MTN Nigeria has announced its conversion from a private company to a public liability company (PLC) ahead of its listing on the Nigerian Stock Exchange.
The telecoms firm listing on the exchange ha been on the works for a while, with the profitable company believed to have foot-dragged over the move that would ultimately see it the company offer a propor tion of its shares to the Nigerian public through public offering.
This conversion is one of the requirements for listing on the bourse.
Speaking on the conversion, Fredi Moolman, MTN CEO, said: “Our conversion to a Plc is a major step towards listing by introduction on the Nigerian Stock Exchange in the first half of 2019.
“It is a reaffirmation of our long-term commitment to expanding investment opportunities for Nigerians, in addition to providing everyday services to them. We look forward to continuing our engagement with the SEC and NSE to take forward the listing process.
The South African firm had earlier indicated that it would list on the Nigeria Stock Exchange by way of introduction in the first half of this year.
The President and Chief Executive Officer of MTN Group, Mr Rob Shuter, at the MTN Group’s investor update conference call, in February, said: .
“We have decided though to pursue the listing by means of a listing by introduction. It is phase one,” he said.
He indicated that the move would enable the company to get listed easily, adding that findings showed that the free float in the Nigerian market would be about 35 per cent.
“It means that we will list the company in the initial phases without any public offer or sell-down or initial public offering. I think this will enable us to get the company listed whilst the market still digests the implications of what has happened over the last few months,” Shuter said.
He added, “We will in phase two be doing a project to increase the Nigerian participation in MTN Nigeria, targeting more a free float of around 35 per cent than the free float we have today which is around 20 per cent. So, we aim to conclude at least the listing by introduction in the first half of 2019, pretty much as soon as we can, and then subject to market conditions, appetite and demand we would in phase two do the sell-down.