MTN Nigeria CEO, Karl Toriola Expresses Motivation Behind Local Ownership Offer
MTN Nigeria’s Share offer has ended. The offer was borne out of MTN Group’s commitment to broaden ownership structure in key markets across its operating countries. The sale was intended to prompt local Nigerian ownership in one of Nigeria’s most prominent capital market success stories of the past 20 years.
CEO, MTN Nigeria, Karl Toriola in an op-ed piece discussed the importance of capital markets, citing how initial investments from a core group of Nigerian investors facilitated the building blocks upon which the MTN Nigeria journey started.
Toriola explained that capital markets serve as a good breeding environment for huge enterprises seeking financing, as well as a structure through which all citizens may share in the success of such companies.
” Local retail investors have the confidence to participate in the capital market because it is accessible, liquid, and well-regulated. By possessing pension funds or mutual funds, or more actively, purchasing shares, local investors can participate in capital markets, encouraging better business activities and impacting the shared economy positively”, said Toriola.
This would be the case for MTN’s ongoing sale of shares. MTN Nigeria offered retail investors the opportunity to buy up to 575 million shares for 169 per share, which is cheaper than the stock market price. The sale of MTN Group’s shares in MTN Nigeria had been purposefully designed to extend its local capital base, allowing as many Nigerians as possible to become owners in MTN Nigeria and, in turn, partake in the success that MTN produces.
MTN Nigeria’s enterprise was floated two years ago at $90 per share, making it the second-largest stock by market capitalization; its share value has subsequently risen by around 100%.
MTN Nigeria had previously expressed its joy at being able to provide its local base with the chance to buy its shares and own a piece of the company’s future, however modest, as a means of recognizing the efforts made over time.
The minimum subscription is for 20 shares, with subsequent lots of 20 shares. The Offer includes a bonus of one free share for every 20 shares purchased, up to a total of 250 free shares per investor.
Retail investors who buy and hold the shares assigned to them for at least 12 months after the allotment date are eligible for the bonus.
Parties interested in purchasing shares can still do so on December 14, 2021, before 5 pm, by completing an application form and submitting the completed application form and evidence of payment to a Receiving Agent.