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MTN to Sell 575m Shares in IPO to Nigerian Institutional, Retail Investors, Stock Soars

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MTN Group Limited has announced its intention to undertake an initial public offering or IPO to sell up to 575 million shares in MTN Nigeria by way of a book build to institutional investors and fixed price to retail investors.

The Offer is set to open in November 2021 with a book build to institutional investors, after which a fixed price is expected to be announced for retail investors also in November 2021.

The Offer is expected to close in December 2021.

This is the first step in MTN Group’s previously communicated statement of intent to sell down approximately 14 percent of its current shareholding in MTN Nigeria.

MTN Nigeria’s shares were up 9.34 percent on the news to N192 per share in trading on the Lagos exchange.

Lizzie Kings-Wali, CEO Blackstone Capital says, this offer of 3.7% of MTN Group’s equity stake to Nigerian investors is broadly in line with their plan to increase equity participation of Nigerians in the company, a strategy which may be aimed at reducing future regulatory risk, following the historic N1trillon penalty in 2015.

“That being said, this Offer for sale should help to increase the company’s float available for trading on the NGX, which is barely about 8%. Without pre-empting the book building process, MTN Group may have to accept a discount to current market price. Interestingly, the shares have been on bid following the announcement, even so this may be reversed as investors better understand the implication of the Offer, which increases the supply of the shares,” Kings-Wali said.

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