Nigeria’s apex capital market regulator, Securities and Exchange Commission (SEC) has said that MTN Nigeria has not filed any application that could kick-start regulatory consideration of the proposed listing of the telco on the Nigerian stock market.
SEC stated that while there had been some engagements with the telco, MTN Nigeria or its professional parties have not filed any formal application with the apex capital market regulator.
MTN recently indicated it plans to list its shares by way of introduction, rather than the initial plan of an Initial Public Offering (IPO).
By way of introduction, MTN Nigeria’s existing shares will be admitted to the Daily Official List of the Exchange for trading. MTN indicated it plans to list before the end of this first half.
Under the extant rules, a private limited liability company seeking to list its shares shall convert to public limited liability company and register its shares with SEC.
For listing by way of introduction, the company will then apply to the relevant Exchange for listing.
In the case of IPO, the company will apply to SEC for approval of the IPO and the relevant Exchange if it intends to list after the IPO.
Briefing newsmen after the meeting of the Capital Market Committee (CMC) in Lagos, Acting Director General, Securities and Investment Services, Securities and Exchange Commission (SEC), Ms Mary Uduk, noted that there is an established due process for listing and issuance of securities in the Nigerian capital market, which forms the basis for regulatory consideration.
“There is no formal application as at now, until when they file application, that’s when we will know what method of listing they want,” Uduk said.
MTN Nigeria had in 2016 appointed an advisory team and set out a road map towards listing on the Nigerian Stock Exchange (NSE) in 2017
The telco however missed the 2017 target and has since been struggling with the listing.
The board of MTN Nigeria had announced the appointment of Stanbic IBTC Capital Limited and its affiliates, Standard Bank of South Africa Limited and Standard Advisory London Limited and Citigroup Global Markets Limited as the joint transaction advisors and joint global coordinators for the proposed listing of MTN Nigeria on the NSE.
It should be recalled that as part of the conditions to settle its $3.4 billion fine by the Nigerian Communications Commission (NCC), MTN Nigeria had announced its intention to list its shares on the NSE as soon as commercially and legally possible.