Equities market gains N1.9bn as SEC admits MTN Nigeria into Premium Board

…N1.79trn listing makes MTN Nigeria’s 2nd largest firm

Motolani Oseni

The Nigerian Stock Exchange (NSE) on Thursday announced the listing by introduction of 20.35 billion ordinary shares of MTN Nigeria Communications Plc.

This is even as the equities market of the NSE on Thursday gained N1.9 billion following the listing of the much anticipated MTN Nigeria.

Details of the listing showed that the shares were introduced at N90 per share on the Nigerian bourse’s Premium Board on Thursday, which will have a free float of 21 per cent, and will initially trade at N90 ($0.25) a share.

With a market capitalization of N1.790 trillion, equivalent to $5.1 billion, it will overtake Nestle Nigeria Plc to become the second biggest firm on the Nigerian Stock Exchange after Dangote Cement Plc, the main asset of billionaire Aliko Dangote.

It is also worthy of note that MTN Nigeria, a part of the MTN Group is the first telecommunications network provider to be listed on the NSE Premium Board, a listing segment for the elite group of issuers that meet the Exchange’s most stringent corporate governance and listing standards.

Commenting on this development at the listing event in Lagos on Thursday, National Council President, NSE, Abimbola Ogunbanjo, said the bourse is particularly pleased that MTN Nigeria has joined the prestigious club of companies listed on our Premium Board with what he described as a landmark transaction, which will differentiate it as a professionally run telecommunications company with high standards, having met The NSE’s listing criteria.

He said: “A Premium Board listing is a sign of commitment to strong corporate governance, excellence, professionalism, efficiency in service delivery and providing increased returns to shareholders.

“It is our expectation that the MTN Nigeria listing, which is the NSE’s 2nd largest will encourage other telecommunication companies to list their shares on The Exchange, thereby opening the sector up to cheaper, the long term capital that will boost innovation and development.”

On his part, the Chief Executive Officer, NSE, Oscar Onyema, said: “We are delighted to welcome MTN Nigeria to the Exchange.

Today’s listing is a promising development in the country’s telecommunications sector and we encourage other players in the sector to explore the different opportunities in the capital markets for raising long term capital.

“As a listing platform of choice, today’s listing will add to our bouquet of diverse investment offerings to the public. Having MTN Nigeria listed in our market is a testament of the Exchange’s commitment to building a dynamic and inclusive market and creating channels for sustainable investment.

“This listing will promote liquidity for MTN Nigeria, enhance its value and increase transparency, as our platform remains one of the best avenues for raising capital and enabling sustainable growth for national development”.

A statement by the NSE, however, noted that it will continue to retool itself in many ways to remain an attractive destination for issuers, building a more responsive market, by deploying cutting edge technology for trading and reducing market infractions through improved market monitoring and surveillance.

The NSE also said that it has developed a market structure that has resulted in upscale securities listing such as SAHCOL Plc, the most recent company under the Bureau of Public Enterprises (BPE) privatisation programme to successfully finalise an initial public offering and list its shares on The Exchange.

Apart from MTN, the NSE Premium Board features other companies like Dangote Cement Plc, FBN Holdings Plc, Zenith International Bank Plc, Access Bank Plc, Lafarge Africa Plc, Seplat Petroleum Development Company Plc and United Bank for Africa Plc.

Meanwhile, the All Share Index (ASI) inched 152.11 basis points on Thursday, representing an increase of 0.54 per cent to close at 28,483.19 basis points from 28,286.08 basis points it opened trading.

Similarly, Market Capitalization increased by N1.9 billion representing an up of 0.54 per cent to close at N12.525 trillion from N10.626 trillion it opened trading.

However, market breadth closed negative, recording 11 gainers and 25 losers while Year-Till-Date (YTD) loss moderated to 9.5 per cent.

A total of 5.5 million units shares of MTN Nigeria was traded at N99 per share valued at N548.6 million. Similarly, activity level strengthened as volume and value traded advanced 76.7 per cent and 35.4 per cent to 312.4 million units and N2.8 billion respectively.

The top traded stocks by volume were Transcorp (105.5 million units), Access Bank (23.5 million units) and First City Monument Bank (23.2 million units) while the top traded stocks by value were Guaranty Trust Bank (N511.2 million), Nigerian Breweries (N494.6 million) and Zenith Bank (N325.3 million).

Nevertheless, all indices under coverage closed negative. The Banking index declined the most, down 1.7 per cent on account of price depreciation in Guaranty Trust Bank (1.9 per cent) and Zenith Bank (2.3 per cent).

The Industrial Goods and Consumer Goods indices trailed, shedding one per cent and 0.8 per cent respectively as investors sold off on Dangote Cement (1.1 per cent), Wapco (1.9 per cent), Cutix (8.3 per cent), and Dangote Sugar (2.2 per cent) while the Oil & Gas index slid 0.6 per cent following sell pressures in Oando (4.3 per cent).

Finally, the Insurance index marginally declined 0.1 per cent on the back of losses in AIICO Insurance (4.4 per cent).