pan-African telecommunications giant, MTN, is on course to become the most capitalized listed firm on the Nigerian Stock Exchange (NSE) following a week-long rally since it completed on the Bourse.
On Thursday, May 16, 2019, last week, the South-African headquartered telco finally completed its long-awaited listing on the NSE, though it only did so by way of introduction, rather than an Initial Public Offering (IPO) that would have given Nigerians more access to acquire shares of the telco.
It debuted on the NSE at a valuation price of N90 per share, listing over 20 billion shares. However, according to a report by Proshare, since the listing of MTN Nigeria on Thursday, May 16, 2019, a total of 105,301,759 shares valued at N12,231,997,316 have traded in three days. These trades were carried out by 10 Dealing Member Firms in 134 cross deals/negotiated deals.
MTN’s introduction to the NSE spiked the exchange’s valuation by N1.83 trillion, with the most capitalized firm on the Bourse being Dangote Cement, with a valued at a reported N2.3 trillion.
But MTN’s share price has been on a relentless spike since its introduction, gaining an average 10% daily since its Thursday listing. That has seen the share price climb from N90 to N150 as at close of trading on Wednesday, a 66.7% growth in one week.
MTN retains a positive perception in most investor’s minds. It has the right customer demographics, earnings remain attractive and continue to dominate one of the country’s most profitable retail market–telecommunications.
With the climb looking unlikely to end anytime soon, it is increasingly likely that MTN may overtake Dangote Cement as the most capitalized firm on the Nigerian Stock Exchange.