Telecoms giant MTN Nigeria Communications yesterday took a huge step towards its listing on the Nigeria Stock Exchange (NSE), with its conversion from a private to a public company.
In a statement, it said it had completed its conversion, describing the exercise as a legal requirement and key milestone preparatory to its listing by introduction on the Exchange’s floor.
The listing will create a new telecoms asset class for investors and provide more Nigerians opportunity to participate in MTN’s business.
The listing is one of the final settlement conditions for the huge fine imposed on MTN by the Nigerian Communications Commission (NCC) for subscribers’ identity module (SIM) registration infraction.
Its Chief Executive Officer (CEO), Ferdi Moolman, said: “Our conversion to a Plc is a major step towards listing by introduction on the Nigerian Stock Exchange in the first half of 2019.
“It is a reaffirmation of our long-term commitment to expanding investment opportunities for Nigerians, in addition to providing everyday services to them. We look forward to continuing our engagement with the Securities and Exchange Commission (SEC) and NSE to take forward the listing process.”
Last month, the telco unveiled its earnings for the 2018 financial year, recording growth above inflation in full service revenue (17.2 per cent) and the addition of nearly six million new subscribers to the network.
The company announced earnings before interest, taxes, depreciation and amortisation (EBITDA) of N453.1 billion and expanded EBITDA margins to 43.6per cent (excluding the Central Bank of Nigeria (CBN) resolution amount).
It added 4.5 million active data customers during the year, delivering data revenue growth of 39.3per cent and expanding to 18.7 million the number of people that it connects to the possibilities that the internet provides.
Moolman said: “Nigeria is one of the largest markets within the MTN portfolio and central to its growth strategy.”
“The upcoming listing is a key milestone for the MTN group and is part of its commitment to localisation in the markets in which it operates.”