By Charles Ike-Okoh
TUE, MAY 07 2019-theG&BJournal- MTN is pretty used to being in the limelight, given that the Telecoms giant has seamlessly moved from the bad press it received on its FX infractions and heavy fines imposed by the Central Bank of Nigeria (CBN) to its current audacious move to list in the Nigerian capital market.
Even so, attempting to enter the fray in a time when the market circumstance is deemed unfavourable for a new issue can make even a market leader such as MTN hit the wrong note.
Questions about the real intention of the listing which is coming by ‘’introduction’’ have attracted derision from market watchers who expected this show of love for the Nigerian market much earlier than now. After all, they have no need to. It’s even been said that MTN’s real intention is to come to the market to recoup the monies paid as fine because all indication points to them being coerced. It is not something they actually wanted to do. MTN itself have secretly argued that. They have a very strong customer numbers in terms of subscribers-over 67 million users. MTN Group has assets in excess of $13 billion.
What is even more striking is the speed with which the board decided it is time to list-coming less than a week after it appointed the Emir of Kano, Lamido Sanusi to the Board as a non-executive director.
It is obvious that it was forced and under duress but it is also right that every listing including the impending listing from MTN attracts scrutiny from all sides, because not all listings guarantees ultimate success for the company and the shareholders. After all dozens of formerly listed companies have high-tailed and many more eyeing delisting because as they say ‘’the market have not helped them meet shareholders expectations.’’
Again, such listings once concluded often move out of the spotlight quickly. Their aftermath-after a long, slow, many-layered process of approval-is a lot less glamorous than the high drama that precedes it.
But you can rightly call MTN the great hope for the Nigerian Stock Market given that there has been a dearth of new issues and the market yearn for a motivator. So their coming is a big door opener
No doubt, the telecommunication sector is one sector that market watchers have been clamouring for to list because of their potential to beef up market capitalisation and market velocity. MTN is a good buy and depending on the quantum of shares they are coming with it is a big deal and which will probably open up the door for other new issues.
The moribund primary market may probably come to life again. It is not certain yet if they are coming in this year or next but their coming will help inclusive growth. What that does also to the ratio of market capitalisation to GDP will be huge. Market capitalisation accounted for 9.2% of its Nominal GDP as at December 2018. MTN has the juice to make a difference here.
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