January 29, 2022


Accounting + Finance Blog

Six Reasons to Buy MTN Nigeria Shares

Six takeaways of the MTN Nigeria Ordinary Shares to retail investors

MTN Nigeria has launched 575 million ordinary shares. The shares are mainly for retail investors. The company wishes to use the funds to support its strong presence in the country and promote the Nigerian digital economy. In this article, I will explain six things you need to know about these shares.

Date of Issue and Closure

MTN Nigeria said it will issue the shares starting from December 1, 2021. And the closure date is December 14 of the same year. This is the number of days available to have a first-hand taste of the company slice of ordinary shares. After this, you can only get these shares on a second-hand basis. That’s if the investors are willing to sell their part of the slice.

Number and price of Shares offered by MTN Nigeria

A total of 575 million ordinary shares will be issued by the telecommunication company. One of the shares is priced at 169 Naira only. This means that a total value of 97.175 billion shares will be sold. Also, the shares will be made available as a fund to the telecom giant to operate its business.

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How many MTN Nigeria Ordinary Shares can you buy?

Retail investors can acquire a minimum of 20 shares. And there is no maximum limit of shares you can buy. Twenty ordinary shares are equivalent to 3,380 Naira only. This implies that you don’t need to have a lot of cash before you can own MTN Nigeria shares. Also, with 10,140 Naira, you can own up to 60 shares.

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Incentives on the offer shares

The telecom company is giving away one share in every 20 shares acquired. What the Telco means here is that if you buy 20 shares, you can own 1 free share. That is a total of 21 shares. Also, if you have 60 shares, you will own additional six shares. That’s 66 ordinary shares! But this free offer is only available to individuals who own the shares for at least one year.

However, the maximum number of free shares MTN Nigeria is willing to offer to each retail investor is 250 shares. That means, if you own 5,000 shares, you can get a total of 250 free shares. And own 5250 shares. Any investor who owes above 5,000 shares says 7,000 shares will have the free 250 units. That’s 7250 units of shares.

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Benefits of owning MTN Nigeria Ordinary Shares

There are lots of benefits accrued to owners of MTN Nigeria’s ordinary shares. One of them is that you will be an owner of one of the prestigious companies in Nigeria. Another benefit is dividends. You will earn dividends every quarter of the year from the number of shares you acquired.

If you hold the shares for a long period, the shares will appreciate. For example, you own 60 units at 169 Naira which is valued at 10,140 now. As years go by, one unit of shares for the telco may be 316 Naira. The value of your 60 ordinary shares becomes 18,960 Naira. Another benefit here is, you can attend the telecommunication annual general meeting as a shareholder.

How to acquire MTN Nigeria Ordinary Shares

MTN Nigeria ordinary shares can be acquired directly through Nigeria Exchange Group “primaryoffer” website. You can download the app on Google Play Store and Apple Store. Other ways you can buy the shares are through Nigerian banks, stockbrokers, and issuing houses.

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MTN Nigeria ordinary shares are a public offer to retail investors. Anyone can buy a minimum of 20 shares, sold at 169 Naira per share. In this article, I have highlighted six points about these shares. Furthermore, the shares can be acquired through the NGX digital platform known as Primaryoffer.