By Peter Egwuatu
Ahead of MTN listing on the Nigerian Stock Exchange, NSE in 2017, operators in the Nigerian capital market have said that its adherence to corporate governance will go along way in attracting local investors.

Capital market operators have described MTN Nigeria’s decision to become a Public Liability Company (Plc) as a ‘welcome development’, saying it would  would boost corporate governance and deepen the market and encourage the active participation of indigenous consumers in the company’s wealth creation process.

Meanwhile, Nigeria has made huge progress in its effort to join the emerging connected society, although a lot of work remains to be done.

The progress has been driven largely by the massive investment in ICT by the digital mobile services providers; over $32 Billion in 15 years with over 150 million connected lines. (MTN alone has invested $15 billion of that amount with over 60 million customers). The mobile today provides the most viable access to the internet in Nigeria.

There have been growing agitations for multinationals in telecoms, oil and gas companies to list on the exchange by way of public offer.

Analysts have argued that listing big corporations on the exchange will significantly raise the capitalisation of the stock market currently estimated at slightly above N9 trillion.

A sectorial analysis of the market shows that the telecommunications sector is under-represented. MTN, if listed, would become the first major national telecoms company whose shares would be traded on the NSE.

MTN-Office

NSE had provided a legislation that covers incentives, unbundling of stringent eligibility requirements that create high barriers for potential entrants and hinder participation by willing businesses, adopting options that promote foreign investment in the economy under terms that support national interest without exposing the market to the dangers of the past.

President of the Institute of Capital Market Registrars, Bayo Olugbemi  said we expect other telecoms players as well as major oil companies and the power sector to join the train.

In his own part, the President, Renaissance Shareholders Association, Timothy Olufemi said: “It is good for the NSE. It would deepen the market. It is to the advantage of the operators especially.”

The Managing Director, Crane Securities Limited, Mike Eze also affirmed that the listing would help to deepen the market. He added that it would stimulate other telecoms participants to list as it would trigger.

“The indication by MTN that they intend to get listed is a sign of one of the long-overdue listings that the market had anticipated but they kept dilly-dallying. First, it is going to help deepen the market. Secondly, it will help to stimulate Airtel, Glo, Etisalat among others, to come to the stock market and be listed.”

Meanwhile, MTN in a statement had said “the listing was part of a settlement arrangement with the Federal Government.

“The Board of Directors has resolved to proceed with preparations for a listing of MTN Nigeria on the NSE as soon as commercially and legally possible, and has established a management task team with the responsibility to guide the company towards a listing,” it said in the statement.

“At present, MTN Nigeria is targeting that the listing takes place during 2017, subject to suitable market conditions.”

The statement was signed by MTN Nigeria’s Public Relations and Protocol Manager, Mr. Funso Aina.

‎The telecoms firm said it had appointed Stanbic IBTC Capital Limited (together with its affiliates, The Standard Bank of South Africa Limited and Standard Advisory London Limited) (collectively “Stanbic”) and Citigroup Global Markets Limited (‘Citi’) as Joint Transaction Advisors and Joint Global Coordinators, with Stanbic acting as Lead Issuing House.

It added, “A full syndicate including Nigerian receiving agents, Nigerian receiving banks and other advisers would be appointed in due course, as appropriate.

“The proposed listing would be subject to suitable market circumstances and conditions and the appropriate approvals from relevant regulators and other stakeholders.”