MTN Nigeria application for listing by introduction excites stock market community

Capital market operators on Monday lauded MTN Nigeria application to the Securities and Exchange Commission (SEC) for listing by introduction, saying that it would deepen market liquidity.

The market operators stated this in an interview with our reporter while reacting to SEC confirmation of MTN Nigeria application for listing by introduction.

Prof. Uche Uwaleke of Nasarawa State University Keffi, told our reporter that the capital market community was in jubilation mood, saying that it would add additional two trillion to the market, when perfected.

Uwaleke, now a research fellow at SEC, said that the market capitalisation of the Nigerian Stock Exchange (NSE) would be deepened with the coming of MTN.

“We are happy about the development because it will further deepen the market if MTN comes, we are looking at additional N2 trillion being added to market capitalisation and it will make MTN the second largest quoted company in Nigeria after Dangote Cement,” he said.

Uwaleke said that listing of MTN would help in product diversification at the exchange.

“This will help to diversify concentration, we will now have telecommunications, industrial sector and not when it’s only Dangote.

“It’s a welcome development and the capital market community is in jubilation mood and we are anxiously waiting for that to materialise, because it will help to deepen the market and give Nigerians the opportunity to partake in the fortunes of MTN,” Uwaleke stated.

He noted that MTN listing would widen the choices of both local and foreign investors in terms of investment decision.

“It is also a door opener for other multinationals to come and be part of success story of Nigerian capital market by seeking listing, especially those in telecommunications sector such as Globacom and Etisalat, among others.

“We expect the big four to come and list on the exchange. The same with oil companies, Shell is not yet listed but we also know that in South Africa, the downstream sector is listed on Johannesburg Stock Exchange.

“Companies in the downstream sector should be sensitised to list on NSE. It’s not about making it compulsory for them to list, it’s about making them understand why they have to list.

“Apart from the fact that it helps you to raise capital, its an opportunity to contribute to the development of the very place where you are making your money from, the bulk of MTN money is coming from Nigeria.

“It will open doors for others to come and list and if they do that, the Nigerian Capital Market will be on its way to becoming African largest stock market, if they all come and list I’m sure we will beat South Africa,” Uwaleke said.

Also speaking, Prof. Sheriffdeen Tella, Professor of Economics, Olabisi Onabanjo University Ago-Iwoye, Ogun said that it was a good development for the stock market.

“It means that capital market is good because when you have such company listed on the exchange, it means stock exchange is very active, it means more recognition for NSE.

“With the listing, they will be able to mobilise some funds first and if they are unable to meet their target they can now go further with public offering. But it’s a good development for the capital market,” Tella said.

He, however, called for review of the nation’s industrial policies to attract more listing on the exchange.

“There should be a revised policy so that companies coming will know what and what they should do. The policy will also give them incentives that will attract them to list,” Tella said.

According to him, capital market operators and the stakeholders, particularly the SEC, will take advantage of this and insist on modernising listing on the exchange, especially on new companies coming to Nigeria.

Mr Sola Oni, a chartered stockbroker and Chief Executive Officer, Sofunix Investment and Communications, said the market had been yearning for such a listing.

Oni said that the quantum of shares would increase the market capitalisation, thereby making the market more attractive.

He noted that it was a positive signal to the companies in the oil industry.