MTN Nigeria changes status to a public liability company ahead of IPO on NSE

Fredi Moolman, CEO of MTN Nigeria, says the listing is part of its commitment to localisation in the markets in which it operates.

MTN is the largest mobile phone operator in Nigeria AFP

“Our conversion to a Plc is a major step towards listing by introduction on the Nigerian Stock Exchange in the first half of 2019.

“It is a reaffirmation of our long-term commitment to expanding investment opportunities for Nigerians, in addition to providing everyday services to them.

"We look forward to continuing our engagement with the SEC and NSE to take forward the listing process,” the company said in a press statement.

Why MTN is listing on Nigerian bourse?

Last year, the telecommunication giant said the listing will be achieved via a listing by the introduction and will be followed by a public offer at the end of the first half of 2019.

The move, the company said it will increase Nigerian ownership in the telecom firm from around 20% to 35%.

The listing was part of the agreements with the government after the telecom firm incurred a record $5.2 billion fine over its failure to deactivate 5 million unregistered SIM cards in 2015.

After a series of diplomatic negotiations, the government reduced the fine to $1 billion (N330 billion), payable over the three years on the terms that MTN enlists on the Nigerian Stock Exchange (NSE).

MTN has fulfilled more than 50% of the fine.