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MTN allocates 661.3m shares, says 85% of subscribers on App are youths

MTN Nigeria has allocated an additional 86.25 million shares following the initial sales of 575 million shares held by the MTN Group in MTN Nigeria.…

MTN Nigeria has allocated an additional 86.25 million shares following the initial sales of 575 million shares held by the MTN Group in MTN Nigeria.

The additional shares were added to ensure that retail shareholders received full allotment despite an over-subscription of about 139.47%.

As a result, 661.25 million MTN Nigeria shares were allotted, comprising the 575 million Offer shares and the 86.25 million greenshoes.

A further additional 4.28 million shares will be allotted to qualifying retail investors who hold the shares allotted to them for 12 months till January 31, 2023.

This is in line with the innovative incentive structure of one free share for every 20 shares purchased subject to a maximum of 250 free shares per investor.

The MTN Group President, Ralph Mupita, had earlier described the public offer as; “the first in a series of transactions as the MTN Group implements its plans to ensure broad-based ownership by reducing its shareholding in MTN Nigeria to 65% over time.”

Following the successful completion of the Offer, MTN Group’s shareholding in MTN Nigeria has reduced by 3.2 per cent points from 78.83% to 75.58%, bringing the company closer to its 65% mark.

The PrimaryOffer App by the Nigerian Exchange Limited was deployed across mobile and web platforms to facilitate the seamless purchase of MTN shares and encourage participation by the youth population.

At the close of the Offer, it was revealed that more than 76% of the retail offer subscribers applied through the PrimaryOffer platform, 85% of these applicants being youths under the age of 40.

Commenting on this, Chief Executive Officer of MTN Nigeria, Karl Olutokun Toriola, said: “It has been inspiring to see so many Nigerians, many of whom are young, acquire shares for the first time, and use a digital platform to do so.

“This is the beginning of a journey to broaden our shareholding and there will be more opportunities to participate.”