Stakeholders call for extension of MTN’s 575 million shares public offer

Following the expiration of the December 14 deadline for MTN Nigeria 575 million shares public offer, shareholder groups have called on the management of the company and the Securities and Exchange Commission (SEC) to extend the telco giant’s Public Offer.

According to them, two weeks is just too short a time for an investment of that magnitude that was largely done via the Public Offer app, which is the first of its kind in the history of the Nigerian stock market.

The Chairman, Ibadan Zone Shareholders Association, Eric Akinduro, while commending MTN Group for its decision to sell up to 575 million shares to institutional and retail investors, noted that the period for the offer is too short.

He said, “The period of the offer is quite short and 575 million shares is also small. I hope the company and SEC will consider an extension, as such will not be a bad idea.

Managing Director, Highcap Securities, David Adonri, also lauded the telecom company for the offering but called for an extension to allow more investors that want to either buy afresh or more.

He said, “Existing and potential shareholders have made a strong case for extension of the closing date for the offer, they can quickly partake since the application is going on simultaneously on the digital and physical space.

“Even within one’s confines and within 10 minutes, one who is conversant with a computer and a mobile phone can run the transaction.

The National Coordinator, Progressive Shareholders Association, Okezie Boniface, explained that extension will be a welcome development “because the value investors have placed on MTNN is very high because it is an international company and people have so much belief in them that they will deliver returns on investments.”

Meanwhile, the spokesperson of MTN, Funso Aina said, “Extending the offer lies in the hands of SEC and MTN.

MTN Nigeria announced an offer of offering 575 million ordinary shares of 50 kobo each to the general retail investing public at a price of N169 per share. Accordingly, the application list for the offer opened on December 1, 2021, and it is scheduled to close by 5.00 pm on December 14, 2021. It is, however, not known at this time if there would be any extension of the offer period despite calls from several quarters.