MTN SHARES SALES PROCESS WHEN THE COMPANY WENT PUBLIC AND THE CURRENT SHARE PRICE 2023

MTN is a leading telecommunications company that operates in various countries across Africa and the Middle East. 

The South-Africa based company entered the Nigerian communication sphere in 2001 with just 250,000 subscribers but now has over 50 million daily users.

MTN Nigeria the Nigerian subsidiary offers various competitive products and services to its customers such as the recently launched MTN 5G Router, and services which include share and sell that enables users to transfer airtime  to other users by activating a share and sell code, 

In May 2019, MTN South Africa and its Nigerian subsidiary went public and were listed on both the Johannesburg Stock Exchange (JSE) and the Nigerian Stock Exchange, now known as the Nigerian Exchange Group (NGX) as MTN Group LTD and MTNN respectively.

Let us take a look at the share sale history of the company.

MTN Share Sales History

MTN's IPO was launched in May 2019, and the company sold 1.2 billion shares to the public, representing 20% of the company's total shares. The shares were sold at a price of R99 each, raising R9.9 billion in capital for the parent company in South Africa. 

MTN Nigeria shares, on the other hand, were listed on an introductory basis, which means no new shares will be available in the immediate term. 20b shares were made available at 90 Naira per share which puts their market capitalization at 1.8t Naira.

On a side note, if you bought the shares in 2019, here is how to calculate your dividends now. 

The IPO was a huge success, with the shares oversubscribed by 50%, indicating strong investor demand, but the price has since fluctuated due to various factors, including regulatory issues and the COVID-19 pandemic.

Current Share Price

As of March 2023, MTN Group Limited's share price on the JSE is R68.50. This represents a decline from the IPO price of R99 but an increase from the 52-week low of R53.10. The company's market capitalization is around R274 billion. while MTN Nigeria's is N249,50, an increase from a 52-week low of N180 on the NXG.

Factors Affecting MTN's Share Price

MTN's share price is affected by various factors, including the company's financial performance, regulatory issues, and industry competition. 

MTN has faced regulatory issues in various countries, including Nigeria and Uganda, which have resulted in significant fines and penalties. These issues have affected investor confidence in the company.

What to Expect of MTN shares in 2023

MTN is expected to continue expanding its operations in various countries, including Ethiopia, which is expected to open up its telecommunications sector to foreign investors. The company is also expected to focus on increasing its digital offerings, including mobile money and e-commerce, similar to the MoMo financial banking services launched in 2022.

The company is expected to face regulatory and competitive challenges in various markets, but strong investor demand for telecommunications companies in Africa is expected to support MTN's share price.

The milestone achieved with MTN's IPO in 2019 was no small feat, and the shares have done well despite a number of setbacks. High demand for its services and stocks is anticipated to underpin the company's share price as it continues to grow its operations and digital products worldwide.

Nonetheless, investors should pay close attention to these aspects since regulatory and competitive problems may have an impact on the company's success.