Goodnews For MTN Share Investors
Good news for mtn share investors as their accounts are being credited.
The accounts of some retail investors who bought some shares during the public offer by MTN Nigeria last December are now beginning to receive their shares. Meristem Securities Limited, a stockbroking firm, notified clients by email Monday that the transaction had been completed and their Central Securities Clearing System Plc (CSCS) account credited.
The accounts of some retail investors who bought some shares during the public offer by MTN Nigeria last December are now beginning to receive their shares.
Meristem Securities Limited, a stockbroking firm, notified clients by email Monday that the transaction had been completed and their Central Securities Clearing System Plc (CSCS) account credited with the full units subscribed.
Further to your request for subscription during the MTNN Public offer for sale, we are pleased to inform you that allocation has been done and your CSCS account credited with the full units subscribed to,” the email read.
Investors who bought shares of the telecommunication giant had been growing impatient following a delay in the allotment of shares.
However, not all who subscribed to the public offer have been allotted their shares
Recall, MTNN said all retail investors who subscribed were allotted shares, so those who are yet to receive confirmation will do so in the coming days,” an investment banker privy to the transaction said.
MTN Nigeria is fresh off an impressive 2021 where revenues hit a record and that has bolstered investor appetite. The retail public offer which followed a sale to institutional investors last December was oversubscribed by 139 percent.
The company made 575 million shares available and received a total application for 802 million units. It decided to allocate 86.25 million units more in addition to what it originally placed on offer.
MTN Nigeria will pay a total of N13.12 per share to investors for the 2021 financial year, a 40 percent increase from the N9.40 paid in 2020. That translates to a payout of N174.4 billion. The telco had declared a N4.55 interim dividend in July 2021 before declaring a final dividend of N8.57 final dividend.
The investors who subscribed to the public offer are also eligible to receive dividends, a mouth-watering prospect for the investors who fell over one another to secure a piece of the company.
MTN shares, which have returned 17 percent in the last year, closed at N199 Monday, according to data from the Nigerian Exchange Group (NGX).
The telecommunication company reported revenues of N1.7 trillion in 2021, eclipsing a record it set last year as Nigeria’s highest revenue-generating company. Profit after tax jumped 45.5 percent to N298 billion.
The telco’s Earnings Per Share (EPS), a measure of profitability, hit N14.67 in 2021, 45 percent above 2020 earnings.
The growth in 2021 EPS was driven mainly by the robust expansion in the top line, rising by 22.9% year on year and expansion in earnings before interest tax, depreciation, and amortization (EBITDA) margin that expanded 209 basis points to 53 percent.
Karl Toriola, Chief Executive Officer, MTN Nigeria Communications (MTN Nigeria) Plc, said the company will build on the success laid in 2021 this year.
According to him, the return to positive subscriber net additions in fourth-quarter 2021 established a solid basis for growth in 2022 as the group ramps up gross connections through its rural connectivity drive and CVM initiatives. As part of its rural connectivity program, MTN Nigeria plans to connect approximately 2,000 new communities in 2022.
He noted that in line with the accelerated growth being seen now, the company expects service revenue growth of “at least 20 percent” over the medium term.
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