MTN overshoots its N97.2b subscription offer with N38.4b

Telecommunication giant, MTN Nigeria Plc, has overshot its proposed N97.18 billion public offer with N38.4 billion, representing an oversubscription of 39.5 per cent.

MTN had offered 575 million ordinary shares of 50 kobo each to the general public at a price of N169 per share.

The application list, which opened on December 1, 2021 and closed on December 14, 2021, however, recorded a subscription of N135.53 billion.

Investors were able to submit applications through the issuing houses, stockbrokers, banks and online through a unique digital application platform, PrimaryOffer, administered by the NGX.

The telecommunication company said it had to allocated additional shares to absorb the oversubscription.

Details of the allotment provided by MTN shows that an additional 86.25 million shares were added to absorb the oversubscription.

This, it said, is in line with the provisions of the offer which allowed the issuer to absorb additional 15 per cent of subscriptions.

A breakdown of the allotment showed that a total of 114,938 new accounts from new market participants were created at the stock market while approximately 76 per cent of successful applicants through the digital platform were women, with 85 per cent of these under age 40.

Valid applications were received for 801.97 million shares, leading to the activation of the approved 15 per cent oversubscription clause of an additional 86.25 million of MTN Nigeria shares. In all, 661.25 million shares were allotted.

A total of 126,720 retail investors submitted valid applications and received full allotment; and institutional investors, including pension funds, insurance companies, asset managers, corporates, and foreign portfolio investors that participated in the bookbuild were allotted 72.09 per cent of their applications.

These include pension funds representing approximately 6.5 million contributors.

With the successful completion of the offer, MTN Group’s shareholding in MTN Nigeria reduced by 3.25 percentage points, from 78.83 per cent to 75.58 per cent.

To cater for the innovative incentive structure of one free share for every 20 purchased, subject to a maximum of 250 free shares per investor, an additional 4.28 million shares will be allotted to qualifying investors who hold the shares allotted to them for 12 months till 31 January 2023.

More than 89 per cent of retail offer subscribers applied through the PrimaryOffer platform through mobile and web.

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