MTN Nigeria performed poorly today on the Nigerian Stock Exchange, the same day its local rival, Airtel Africa, listed its shares on the Nigerian bourse in a cross border listing.
Recall that Airtel Africa, last month, listed on the London Stock Exchange (LSE) where it had a rather disappointing debut. The stock slumped 15%, losing about £400 million of its opening valuation.
But the London performance had little or no effect on the company’s NSE debut today. This is because Airtel began trading at N399.30 kobo per share earlier today and closed flat at N399.30 kobo per share.
Airtel Africa’s successful debut on the Nigerian Stock Exchange is expected to encourage other telecoms companies such as Globacom to list.
Why Airtel’s NSE listing is beneficial: Airtel Africa listed 3,758,151,504 ordinary shares at an offering price of N363 per ordinary share. This is expected to benefit both NSE and the company in the following ways;
- The listing added N1.36 trillion to the market capitalization of The Exchange.
- It will increase the visibility of Airtel Africa to investors on the continent and across the globe as the company seeks capital to finance its debt.
Airtel’s lackluster debut on LSE overshadowed the company’s NSE listing. For this reason, some people anticipated a far worse debut. But the company definitely surprised the market, even though the performance could have been better.
In the meantime, MTN Nigeria declined by -0.4% after closing at N129.05 kobo per share. The telco had opened the market at N129.45 kobo.