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MTN Nigeria Launches Equity Bookbuild To Investors

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the telecom company informed the investing public and the Nigerian Exchange in a statement.

Olushola Okunlade Writes

MTN Nigeria has launched an equity book-build to qualified investors ahead of its planned sales of 575 million ordinary shares of the company to the public.

The telecom company informed the investing public and the Nigerian Exchange in a statement.

This is coming after the telecommunications company had obtained regulatory approval from the Securities and Exchange Commission (SEC) to proceed with the offer.

According to the statement, MTN Nigeria hinted that the company has now 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.

MTN Group had announced the decision to sell down a 14% equity stake in the largest telecommunication company in Nigeria where it holds more than 76%. 

The telecom company told Nigerian Exchange and Investing public that the institutional offer opens today and is expected to close on Friday after which a fixed price will be determined for the retail offer.

The reports that book building is the process by which an underwriter determines which share should be sold to retail investors.

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Digital Service Exportation: Nigeria To Benefit From $4.7 Trillion Market

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Digital Service Exportation: Nigeria To Benefit From $4.7 Trillion Market

DIGITAL SERVICE EXPORTATION: NIGERIA TO BENEFIT FROM $4 TRILLION MARKET

By Nneka Ukachuwkwu

The National Information Technology Development Agency, NITDA, and Nigerian Export Promotion Council, NEPC have forged an alliance that could enable Nigeria to benefit from the yearly $4.7 trillion exportation of digital service.

This alliance is in line with the Digital Innovation and Entrepreneurship Pillar of the NITDA’s 2021-2024 Strategic Roadmap and Action Plan recently launched.

This was made known during a press briefing hosted by the outgoing NEPC Executive Director, Mr. Segun Awolowo to commemorate the consolidation and partnership between the two organisations. 

The NITDA Director-General, Mallam KashifuInuwa, CCIE who was represented at the event by the Acting Director, Corporate Planning and Strategy (CPS) Dr. Aristotle Onumo said the partnership is aimed at facilitating the exportation of digital services adding that more partnerships of this nature from the public and private sectors would bring out synergy, exchange of ideas and knowledge sharing among them.

He emphasized that the digital Innovation and Entrepreneurship Pillar of SRAP enables NITDA to easily collaborate with relevant stakeholders in the exportation of indigenous services saying “It would not have been so for NITDA to collaborate with sister Agencies that have similar visions to drive the digital economy to its rightful place in Nigeria.”

Mr. Awolowo, during his remarks, averred that the partnership has provided about N150 million support grants to innovation hubs across three geopolitical zones in Nigeria. He said about 300 million in grants to support Start-ups that are exporting and have the potential to export services in the Entertainment Tech, FinTech, EduTech, and LogisticsTech sectors.

He stated that “We are also providing support to drive advocacy to ensure that Nigerian Start-up Bill is passed by the end of the year.”

He noted that due to the level of inter-agency collaboration between NITDA and NEPC, they have been able to attend to all areas of the services export ecosystem from regulatory challenges to access to market and finance, skills gaps, and most importantly digital infrastructure.         

It could be recalled that some of the achievements of the partnership include the Outsource Nigeria Initiative, financial interventions for six Startups, support to three innovation hubs, setting up of skills acceleration centres, and advocacy support for the Nigerian Start-up Bill.

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NCC Did Not Move 5G Deadline After Only MTN Submitted Bid

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As Commission Maintain Principles Guided By Fairness, Firmness, And Forthrightness

…As Commission Maintain Principles Guided By Fairness, Firmness, And Forthrightness

Olushola Okunlade Writes

The attention of the Nigerian Communications Commission (NCC) has been drawn to the front-page headline of the BusinessDay newspaper of Thursday, December 2, 2021, with the title, “How NCC moved 5G deadline after only MTN submitted bid.”

The publication alleged that “the Commission was forced to move the November 24 deadline for the submission of the bid and payment of the ten percent fee of $20 million after it emerged that only MTN Nigeria had complied with the requirement.”

It is pertinent to state that the Nigerian Communications Commission (NCC) maintains an unimpeachable record and reputation based on precedents of open and transparent spectrum auctions over the years, which had earned it both local and international recognition.

For proper guidance of our stakeholders and the general public, it should be recalled that as part of the regulatory processes leading to the auction of the 3.5GHz spectrum, the Commission had carried out the following activities: October 7, 2021, the Commission exposed the Draft Information Memorandum (IM) on the auction of the 5G spectrum on its website (www.ncc.gov.ng) and issued a public notice in major media channels, including print, electronic and broadcast media. Comments on the draft IM were received by the Commission up until October 28, 2021. 

On November 3, 2021, the Commission held a stakeholders’ engagement forum in Lagos at which comments received from a broad segment of stakeholders, including the major operators were exhaustively discussed and considered. 

On November 10, 2021, the Commission published the Final IM, and Stakeholders’ comments thereon, on its website and national dailies, and set the deadline for the submission of bids on Wednesday, November 24, 2021. 

On November 23, 2021, just a day before the deadline for the submission of bids, Air Traffic Controllers went on strike, disrupting flights operations in Lagos. 

As a responsive regulator, and following concerns expressed by industry stakeholders and potential bidders for the 5G Spectrum, including MTN, about the possibility of meeting the deadline in light of the flight disruptions, the Commission’s Board approved an extension of the deadline from Wednesday, November 24, 2021, to Monday, November 29, 2021. 

Indeed, on November 23, 2021, MTN had communicated to the Commission via email, asserting its concerns about the air traffic controllers’ strike and how it is likely to impede the timely submission of their bid. 

On December 1, 2021, the Commission announced that at the close of the bid submission date of November 29, 2021, three companies, namely MTN Nigeria, Mafab Communications Ltd, and Airtel Networks Ltd had successfully submitted their bids in line with the requirements of the IM. 

The public must also be aware that all three bidders are existing licensees of the Commission under different license categories. 

The Commission would like to state that the BusinessDay newspaper’s story is replete with misinformation, which is capable of misleading industry stakeholders, the general public and undermining the integrity of the ongoing process for the auction of the 5G spectrum. 

For instance, the publication alleged that Mafab Communications is a relatively unknown operator in the industry, suggesting that it was not eligible to bid for the spectrum. The IM has clearly stipulated that new entrants into the industry can participate in the bid and if they are successful, the Commission will issue the entity an operating license in line with the extant provisions of the Nigerian Communications Act (NCA) 2003 and its licensing regulations.

The Commission is consistently guided by its well-established principles of fairness, firmness, and forthrightness and wishes to assure Nigerians that it is determined to ensure the successful implementation of the 5G Auction spectrum, which is set to take place on December 13, 2021.

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MTNN Launches Public Offer To Retail Investors At N169

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the telecom company informed the investing public and the Nigerian Exchange in a statement.

“Our journey to become the largest network in Nigeria has been humbling, but we still have a long way to go

Olushola Okunlade Writes

MTN Group Limited said Tuesday that it is launching a public offering for the placing of up to 575 million shares held in MTN Nigeria, which will be priced at N169 a share.

The telecom giant said this in a regulatory filing, two years after MTN Nigeria became a listed entity in the local bourse. The telecommunications company based in South Africa said the offer will open on December 1 and close on December 14, 2021.

The decision on pricing was taken via book building that lasted for a week to institutional investors, after which retail price was determined. Recall that MTN was listed at N90 2 years ago by way of introduction and the stock has gained more than double its initial opening price.

According to its filing, the minimum subscription is for 20 shares and a lot of 20 shares thereafter. MTN said the offer includes an incentive in the form of one free share for every 20 shares purchased, subject to a maximum of 250 free shares per investor.

The company said this incentive is open to retail investors who buy and hold the shares allotted to them for 12-months, post allotment date.

Commenting on the price announcement, Karl Toriola, Chief Executive Officer of MTN Nigeria Plc said, “the success of and growth of MTN is intrinsically linked to that of Nigeria and Nigerians.  Therefore, we are very excited to offer Nigerians the opportunity to own shares in MTN Nigeria”.

“Our journey to become the largest network in Nigeria has been humbling, but we still have a long way to go. There is much more to do to support the evolution of an inclusive digital economy and we continue to invest as we evolve into a truly digital operator, capable of seamlessly integrating value across evolving telecommunications, digital, and fintech segments”, Toriola added.

“With this offer, we will contribute to the further deepening of Nigeria’s equity capital markets. It is the first in a series of transactions as the MTN Group implements its plans to ensure broad-based ownership by reducing its shareholding in MTN Nigeria to 65% over time,” President and Chief Executive Ralph Mupita said.

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