MTN Nigeria Public Offering Oversubscribed By 139.47%

MTN Nigeria announced that a total of 661.25 million shares worth N111.75 billion were oversubscribed by 139.47 percent during series 1 of its initial public offering.

MTN said in a statement filed Tuesday with the Nigerian Exchange Limited (NGX) that its share sale was 139.47 percent oversubscribed, with valid applications for a total of 801.97 million shares, compared to the 661.25 million shares issued.

It stated that an additional 86.25 million shares were allocated and that the offer resulted in the creation of 114, 938 new CSCS accounts, demonstrating the strength of the offer.

According to MTN, approximately 76% of successful applicants via digital platforms are female, and 85% are under the age of 40.

The company disclosed that the offer was made to qualified institutional investors via a bookbuild and to retail investors via a fixed price offer.

“The fixed price offer to retail investors was at a discount of 11 per cent to the closing price of MTN Nigeria’s stock on the day the bookbuild was completed.

“It marks the first time a digital application platform was used to democratize investing in a public offer and maximize investor participation across the country,” the statement stated.

Ralph Mupita, Chief Executive Officer, MTN Group, stated, “We are pleased that the offer has given so many Nigerians the opportunity to become owners of MTN Nigeria. With over 6.6 million Nigerians directly or indirectly becoming shareholders in MTN Nigeria, the objective of broadening the shareholder base, and creating shared value has been achieved.”

MTN Nigeria’s Chief Executive Officer, Karl Toriola, stated that the company was delighted to welcome so many new shareholders.

“It has been inspiring to see so many Nigerians, many of whom are young, acquire shares for the first time, and use a digital platform to do so. This is the beginning of a journey to broaden our shareholding and there will be more opportunities to participate,” he added.