MTN Nigeria public offer oversubscribed by 139.47%

MTN Nigeria Communications (MTNN) Plc has announced that its first public offering of 575 million shares was oversubscribed by 139.47 per cent.

This is contained in a statement signed by MTNN company secretary Uto Ukpanah, posted on the Nigerian Exchange NGX website.

The statement said the offering was 139.47 per cent oversubscribed, triggering the allocation of an additional 86.25 million shares.

It revealed that 661.25 million MTNN shares were permitted, adding that 126,720 retail investors submitted valid applications and received the full allocation.

The statement added that 114,938 new Central Securities Compensation System (CSCS) accounts were created, representing new market participants.

It said that about 76 per cent of successful applicants through the digital platform were women and 85 per cent were under 40 years old.

The statement also said that after the successful completion of the offering, MTN Group’s stake in MTNN was reduced by 3.25 per cent, from 78.83 per cent to 75.58 per cent.

Commenting on the offer, MTN Group CEO Ralph Mupita said: “We are pleased that this offer has given so many Nigerians the opportunity to become owners of MTNN with over 6.6 million Nigerians becoming direct or indirect owners. in MTNN shareholders.

“The goal of expanding the shareholder base and creating shared value has been met. We are proud that our offering was the first Nigerian public offering to use the Digital Application Platform, Prime Offering, which enabled broader investor participation in Nigeria.

“We thank the Nigerian authorities for their support of this offer, we remain committed to playing our humble role in driving digital and financial inclusion in Nigeria through the medium,” said Mupita.

Additionally, Karl Toriola, CEO of MTNN, said: “We are delighted to welcome so many new shareholders to the MTN family, 11.6 times more than before the offering.

“It has been inspiring to see so many Nigerians, many of whom are young, buy shares for the first time and use a digital platform to do so.

“This is the beginning of a journey to expand our shareholding and there will be more opportunities to participate.

“We are pleased with the level of digital innovation that we championed with this offering with the active collaboration of our main broadcaster and the various regulatory bodies.

“Deepening retail participation in Nigerian capital markets is a process and we are off to a great start, demonstrating the role that digital platforms can play in expanding access,” said Mr Toriola.

Bolaji Balogun, CEO of Chapel Hill Denham, the local broadcasting house, said: “Chapel Hill Denham is honoured to have worked with MTN to complete Nigeria’s first digital and predominantly green offering.

“I wish to thank the Securities and Exchange Commission (SEC), NGX, CSCS, all professional firms and other interested parties for delivering a great victory for the Nigerian capital markets by allowing the adoption of the main offering and this transaction marks a new and exciting future.

“Over 90 per cent of the offering’s underwriters were first-time participants in the capital markets and the MTNN Instruments case made that possible,” said Mr Balogun.

NGX CEO Temi Popoola said, “NGX is proud to have worked with MTNN, Chapel Hill Denham and other transaction parties to drive the Nigerian capital market forward through the adoption of forward-thinking technology.”

CSCS Executive Director Haruna Jalo-Waziri said: “We are excited to be part of the innovation that the offering brings, which enabled the successful launch of the primary offering digital application platform.

“This further reinforces the need for digital transformation, enabling market access for all categories of investors, including institutional and retail investors within and outside the country.”