Nigerian Exchange Limited (NGX or The Exchange) has said that it remains the preferred listing destination for companies seeking to raise capital via corporate bonds, equities and even private companies looking to raise public capital.
According to the NGX, market stakeholders were excited to learn last week that MTN Nigeria Communications (MTNN) Plc is taking advantage of this opportunity and has obtained the approval of the Securities and Exchange Commission (SEC) for the offer for sale of up to 575 million ordinary shares in MTNN held by the MTN Group.
“Capital is critical for business growth, NGX plays a critical role in the capital formation process by mobilizing long-term savings to finance long-term investors and helping issuers and investors meet their objectives. In 2021, NGX has facilitated needed financing of over N6.71 trillion raised by governments and corporates across various asset classes. Notable among these transactions is Emzor Pharmaceuticals’ N13.7 billion 5-Year Series 1 Fixed rate Senior Unsecured Bond listed exclusively on NGX in April 2021 and being the first public instrument issued by the company. Also notable is BUA Cement’s debut listing of a N115 billion Bond issue, the largest of many corporate debt issuances in the history of the Nigerian capital market.
“Attention has now shifted to the equities market where MTNN will float the first Public Offer of 2021. The offer commenced by way of a book build to institutional investors (Institutional Offer), and subsequently, a fixed price to retail investors (Retail Offer). The Institutional Offer opened on 23 November 2021 to close on 26 November 26, after which a fixed price will be determined for the Retail Offer. Book building is a process that assists companies determine the price of their shares, with the help of investment bankers, when offering them in an Initial Public Offering (IPO), “the NGX said.
It added, “What is also interesting to note about this offer is that NGX has received ‘No Objection’ from the apex regulator, Securities and Exchange Commission (SEC) to establish and deploy an electronic platform for use in the e-offering of MTNN’s public offer. The electronic platform, Primary Offer is sponsored by NGX and will provide retail investors with access to various capital market products and issuances from the convenience of their mobile devices.”
