MTN Nigeria Communications Plc is a Nigerian firm that operates GSM cellular networks and provides other associated services in Nigeria.
Broadband fixed wireless access service, telecommunications services, and mobile financial technology (fintech) are all products and services provided by the firm. Here, we take a closer look at MTN shares in order to determine whether they are worth buying on the Nigeria stock exchange.
About MTN Shares Performance
MTN Nigeria is one of the most successful companies in Nigeria, which is also the country’s largest telecom provider.
With initial funding from a small group of Nigerian investors in 2001, MTN got its start in Nigeria and has continued to count on this original group of investors as partners in its expansion and success over the years.
The company executive has stated that there is no more fitting way to celebrate MTN Nigeria’s 20th anniversary of operations in Nigeria than to increase the number of Nigerians who buy MTN Nigeria shares through a public offering of its shares.
The stock market has sent out feelers suggesting there will be an oversubscription for MTN Nigeria’s historic public offer of 575 million units of ordinary shares.
Stock brokers and investors are reportedly analysing information on the issuer, MTN, and the offer’s structure in order to project future returns to investors.
To this end, MTN Nigeria’s most recent financial statement shows that the company has better corporate profits strength compared to other sectors, with basic earnings per share (EPS) at N10.82, about double that of the best performing stock in the banking sector of the stock market.
The nine-month 2021 results showed a 51.9 percent increase to N321 billion, the strongest growth rate in the Nigerian business sector, further demonstrating the company’s robust profitability, so that it is certainly worth it to buy MTN shares.
In the third quarter of 2021, the company’s sales reached N1.21 trillion, making it the first Nigerian corporation to cross the trillion-naira threshold, an increase of 23.6 percent year over year.
Investors are psyched about the chance to get into the company at this early stage thanks to the ongoing share sales. The enthusiasm seems to align with the company’s primary goals in the IPO.
MTN Share Offer
The MTN Group, the company’s main stakeholder, is offering 169 per share in a public offering to sell 575 million shares to individual investors. After acquiring a minimum of 20 shares, additional purchases must be made in increments of 20.
The maximum number of free shares you can receive is 250, and you earn 1 free share for every 20 shares you buy. The purchased shares must be held for at least a year following the allotment date to be eligible for the free shares.
The offer to sell up to 575,000,000 shares of MTN Nigeria stock held by MTN Group has been designed to ensure that it broaden our local shareholder base providing opportunity for as many Nigerians as possible to become shareholders in MTN Nigeria and share in the growth and value which this great business creates.
The purpose of the public offering is not to increase capital, but rather to systematically reduce MTN Group’s ownership stake from over 79 percent to 65 percent.
The business further stressed that this does not represent an exit on the part of the MTN Group from Nigeria, since, in their view, neither MTN Group nor MTN Nigeria would exist without the other.