MTN is to list its Nigerian Business (“MTNN”), which is estimated to be worth about $6 billion, on the Nigerian Stock Exchange by next quarter.
The company has obtained shareholder approval for the listing and is in the process of seeking regulatory approvals.
Proshare said it “believe listing of the largest telecommunications company in Nigeria on the domestic bourse is a game changer for the equity market and as such, assess preliminary details surrounding the issue”
MTN Nigeria (MTNN) is a subsidiary of MTN Group South Africa (Africa’s biggest mobile phone operator) and the largest contributor to the group earnings accounting for about 33% of its revenue (5-year average).
According to the Nigerian Communications Commission (NCC), the telecommunications giant has a customer base of over 52 million subscribers, accounting for c.36% market share in the country.
MTNN began operations in 2001 after securing one of four GSM licenses offered by the Nigerian Government in a deal worth $285 million.
Since then, the Telco giant has so far made significant investment in its mobile infrastructure, with total assets worth over ₦1 trillion as at FY’16, and has enjoyed a decent level of return over the years.
MTNN offers cellular network access to its subscribers within Nigeria, with airtime and subscription accounting for 64% of revenue as at FY’16 and roaming services (International roaming services, including data roaming, in-flight roaming, and WiFi roaming services) making up the second largest contributor to revenue at 12%.
Currently, MTNN is controlled by MTN International (Mauritius) Limited (MTNI) with 75.8% ownership.
Also, 18.7% of its ordinary shares outstanding is held by Nigerian shareholders through special purpose vehicles.
In addition, 2.8% is owned by Mobile Telephone Networks NIC B.V and 1.8% owned by Public Investment Corporation SOC Limited.
Upon completion of the planned IPO, MTNN will be the first subsidiary of the MTN Group to be publicly listed on a stock exchange, though we note that the Group has announced its intentions to also list 35% of its Ghanaian business on the Ghana Stock exchange by the end of 2018.