MTN Nigeria Plc is the company with highest revenue among the most liquid and capitalised in Africa’s largest economy, which makes the telco giant a “must own stock” for retail investors.
It had revenues of N1.20 trillion as at September 2021, followed by Dangote Cement,(N1.02 trillion); Access Bank, (N693.12 billion); Ecobank, (N691.78 billion); Flour Mills, (N522.82 billion); Zenith Bank, (N518.67 billion); United Bank for Africa N490.82 billion); FBN Holdings, (N427.39 billion); Guaranty Trust Holding Company, (N318.50 billion); Nigerian Breweries, (N309.28 billion); Nestle Nigeria, (N261.59 billion); Lafarge Africa, (N219.19 billion).
Analysts are wagering that MTNN will deliver higher returns to investors in the form of share appreciation and bumper dividend; they added that Nigeria’s burgeoning and young growing population combined with the proliferation of smartphones have helped lifted
optimism that earnings will be magnified next year.
The company will build on the momentum from the third quarter to deliver on its service revenue growth target. It remains focused on accelerating the expansion of it 4G coverage and rural connectivity programme while providing home broadband.
In a sanguine tone, analysts at Chapel Hill Denham in a latest note to clients see a surge in the number of retail shareholders of MTNN after the completion of its share offer, which will make the telco giant the most liquid stock on the NGX.
In news that elated investors, MTNN announced it planned to have over 2 million shareholders with its ongoing retail offer which had been approved by the Securities and Exchange Commission (SEC).
The public offer to retail investors for sale of up to 575 million shares held in MTN Nigeria by MTN Group will be priced at N169 per share (the offer).
The minimum subscription is for 20 shares and lots of 20 shares thereafter. The Offer includes an incentive in the form of 1 free share for every 20 shares purchased, subject to a maximum of 250 free shares per investor.
MTN Nigeria has a market capitalisation of N3.55 trillion as of 2:00 pm on Friday, and a low leverage gives it the leeway to jerk up dividend.