Enterprise Television- Telecoms Giant Plans $500m Financing from Nigeria’s Stock Market
Stakeholders in the Nigerian capital market have described the move by the telecommunications giant, MTN, to raise about N153 billion ($500 million) from the sale of shares in its Nigerian business during the first half of this year as a positive development.
The telecom firm, which controls about 39 per cent market share, currently service about 57 million customers in Nigeria, at the weekend, pledged to take immediate steps to raise about N153bn ($500m) from the sale of shares in its Nigerian business during the first half of this year.
The Nigerian Stock Exchange (NSE) had also 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 of options that promote foreign investment in the economy under terms that support national interest without exposing the market to the dangers of the past.
MTN has close to 50 per cent of the subscriber market in Nigeria. But its dominance is way deeper than that. Investigations revealed that MTN has more than 80 per cent of the revenues of all telecommunications companies in Nigeria.
However, there have been growing agitations for multinationals in the telecoms and oil and gas companies to list on the nation’s bourse by way of public offer to accommodate members of the investing public.