Chief Executive Officer of Chapel Hill Denham Advisory Limited, Mr. Bolaji Balogun has said the listing of MTN Nigeria Communications Plc will encourage many other large unlisted companies in telecommunications and other sectors to list on the Nigerian Stock Exchange (NSE).
The NSE last Thursday listed the shares of MTN Nigeria, adding N1.8 trillion to the market capitalisation of the exchange. MTN is the second largest stock on the NSE now after Dangote Cement Plc.
Balogun, whose company and Stanbic IBTC Capital, acted as joint financial advisers to MTN on the successful listing, said it was significant.
“The listing is very significant firstly because it is adding almost N1.8 trillion to market capitalisation. It would be the second largest company by market capitalisation on the exchange and more importantly, it will also bring more of Nigeria’s best companies on to the exchange and give a wider group of Nigerians the opportunity to participate in its share holding,” he said.
According to him, there are very few companies in Africa today that generate $1 billion of free cash flow, explaining that MTN is one of those special companies and “I am really pleased we have it on the stock exchange.”
“This listing would encourage many other large unlisted companies both within that sector and as well as other sector to start to think about the Nigerian stock market,” Balogun added.
An excited Chief Executive Officer of NSE, Mr. Oscar Onyema had said they were delighted to welcome MTN Nigeria to the exchange.
He said: “The listing is a promising development in the country’s telecommunications sector and we encourage other players in the sector to explore the different opportunities in the capital markets for raising long term capital. Having MTN Nigeria listed in our market is a testament of the exchange’s commitment to building a dynamic and inclusive market and creating channels for sustainable investment. This listing will promote liquidity for MTN Nigeria, enhance its value and increase transparency, as our platform remains one of the best avenues for raising capital and enabling sustainable growth for national development.”
The listing will create a new telecoms and technology asset class for investors and provide an opportunity for a wider group of Nigerians to participate in the MTN investment story opportunity.
The listing has made it possible to broaden the public shareholder base over time and will enable MTN Nigeria shareholders to freely to trade their shares on the NSE.