Nigeria: MTN’s public offer of 575 million shares oversubscribed by 139.47%
As predicted by many investment analysts, MTN’s December public offer of 575 million units of shares in Nigeria was oversubscribed by 139.47%.
While announcing the completion of the series 1 offer in a regulatory filing with the Nigerian Exchange (NGX), the telecom company explained that it had to issue an additional 86.25 million units of shares following the oversubscription.
The corporate action, a copy of which was obtained by Business Insider Africa, further disclosed details of public offer thus:
- A total of 661.25 million MTN Nigeria shares were eventually allotted, as against the 575 million units that were initially planned.
- Retail shareholders received full allotment despite the oversubscription.
- 114, 938 new Central Securities Clearing System (CSCS) accounts were created in the course of the offer, thus deepening local investors’ participation in the stock market which was the main objective of the public offer.
- About 76% of the successful applicants are women and 85% are under the age of 40.
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Recall that Business Insider Africa reported about the public offer back in December. MTN Nigeria explained that the shares, which were original owned by its parent company MTN Group, were to be sold at an offer price of $0.41 (N169) per share. Ralph Mupita, the CEO of MTN Group, noted that the public offer would contribute towards deepening Nigeria’s equity capital market.
“The offer was oversubscribed with valid applications for a total of 801.97 million units, leading to the activation of the approved 15% oversubscription clause of an additional 86.25 million MTN Nigeria shares. In all, 661.25 million MTN Nigeria shares were allotted. A total of 126,720 retail investors submitted valid applications and received full allotment; and institutional investors including pension funds, insurance companies, asset managers, corporates and foreign portfolio investors that participated in the bookbuild were allocated 72.09% of their applications. This includes Nigerian pension funds representing approximately 6.5 million Nigeria contributors,” said a part of the latest corporate action by MTN.
Commenting on the successful completion of the exercise, the CEO of MTN Nigeria Karl Toriola, said the company was excited to welcome the new shareholders of the company.
MTN Nigeria is one of MTN Group’s strongest and most valuable subsidiaries. In the financial year ended December 31st 2021, MTN Nigeria reported a profit after tax of N298 billion (approximately $716.7 million, according to its audited financial statements.
