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Everyone now wants the shares of MTN Nigeria. The demand for this stock is so strong that hardly will any discourse take place on radio, TV or social media without its name being mentioned. The positive sentiment is because its financial, demographic and economic factors point to a stock that fits into the investment objectives of bargain hunters, ethical and growth investors.
So, on Thursday May 16, 2019, MTN Nigeria recorded another “first” as it became the first telecommunications company to be listed on the Nigerian Stock Exchange (NSE). At the price of N90 per share, its listing on the NSE added another N1.83 trillion to the market capitalisation of equities. Without MTN, the NSE might have probably turned to a bond market because on May 15, 2019, the bonds market capitalisation closed at N10.82 trillion compared with the equity market capitalisation that closed the day at N10.37 trillion.
MTN Nigeria was set up in 2001 with a view to tapping the opportunities in the Nigerian telecommunications sector following a successful liberalisation program by the federal government which paved the way for private sector players to come in. The firm paid $285 million to secure one of the four available digital mobile licenses (DMLs) in order to operate the global system for mobile telecommunications popularly called GSM for an initial 15-year license. The license allowed it to operate a 900MHz and 1,800MHz second generation (2G) DML within the country.
Leveraging on the technical expertise of its parent company, MTN Group Limited which is based in South Africa, MTN Nigeria set the pace for others as it established itself as the market leader. It strengthened its base in 2007 when it launched a 3G service following the payment of $150 million. Its expansion program received … Read More...