MTN Group is set to offer 14 per cent of its 78.8 per cent shares in MTN Nigeria to Nigerians as a boost to its stock market liquidity by N375bn.
The company’s Group President and Chief Executive Officer, Ralph Mupita revealed that the group planned to sell 14 per cent of MTN Nigeria to Nigerian investors.
Mupita said, “MTN Nigeria, in which MTN Group has a 78.8 per cent stake, sought to have the largest retail shareholder base on the Nigerian Stock Exchange, where it has a market capitalization of N3.4tn ($8.2bn).”
He further revealed that, “the exchange means more liquidity. Their stocks become more active, and also, exchanging shares between investors becomes much easier.
“Now large chunks of their shares are held by other corporate investors, or institutional investors. If that be the case, they may not be the kind of investors that sell every now and then, but with share issues becoming more widespread, I mean among many investors, then it means more liquidity.
“In terms of price stability, it may swing both ways. If you look at a stock like Nestle, the number of shareholders is not as many as several others. And the number of shares is marginal; it is less than a billion.
“With MTN trying to have more of their shares in the hands of many investors, it will affect the stability of the price of that stock.”