Nigeria: MTN Looking To Sell Some 30 Percent Share Capital To The Public
Interested parties in the IPO indicated that MTN Nigeria could sell the said 30 percent of its share capital to the interested public to make a substantial number of the company’s shares is freely available in the hands of retail investors.
MTN Nigeria plans to raise the sum of $400 million to $500 million through an IPO scheduled for the second half of 2018. According to reports, MTN Nigeria plans to have a free float of some 30 percent, above the minimum NSE's listing requirement. Free float, also known as public float, refers to the number of shares of a quoted company held by ordinary shareholders other than those directly or indirectly held by its parent, subsidiary or associate companies or any subsidiaries or associates of its parent company.
Economic pundits have pointed out that MTN Nigeria will use the IPO to dilute the current shareholdings and free up shares for retail minority shareholders as is expects to be listed on the premium board of the NSE.
Market sources are hopeful that despite the recent downtrend in the stock market they expect MTN Nigeria to proceed with the IPO as scheduled.
With over 55 million subscribers, MTN Nigeria is the largest subsidiary in the MTN Group. Since inception in 2001, it has led the growth in the voice market.