MTN Group has raised gross proceeds of R4.3-billion through the sale of shares in its Nigerian subsidiary that has seen its stake in the Lagos-listed company reduced from 78.8% to 75.6%.

The offer, the first in a series that will see its ownership of MTN Nigeria Communications reduced to 65% over time, was 1.2 times oversubscribed, with 802 million shares subscribed for by more than 126 000 investors. Many of the retail investors are new to the market.

The offer was implemented by way of a bookbuild to qualified institutional investors and a fixed price offer to retail investors.

A total of 661.25 million MTN Nigeria shares were allocated, comprising the 575 million offer shares and a 15% “greenshoe” of an additional 86.25 million shares.

A further maximum of 4.27 million shares (0.02%) will be allocated to qualifying retail investors who hold the shares for a year.

“MTN Group will continue its work to deliver on its stated intention of broadening the local shareholder base in MTN Nigeria, subject to market conditions and regulatory approvals, with a goal to hold approximately 65% of the business in the medium term,” said MTN Group CEO Ralph Mupita in a statement on Tuesday.

MTN, which has faced punishing regulatory fines from the Nigerian authorities in the past, will no doubt be hoping the inclusion of a large base of local investors in MTN Nigeria Communications will lead to a more amicable relationship with regulators and government into the future.

MTN Group shares were trading virtually unchanged at 10.20am on Tuesday in Johannesburg at R191.95 apiece. Over the past year, and up to Monday’s close, they have added a stunning 212%. — (c) 2022 NewsCentral Media