Following the announcement of MTN Nigeria Communication Plc that it was selling an additional 575 million shares at N169 per share, many investors have been asking questions on how to own a piece of the telecommunications giant before it closes on Tuesday, 14 December 2021.
Before we proceed, it is important to note that MTN has pegged the minimum subscription per transaction at 20 shares and subsequent multiples of 20, 40, 60, etc. The share offer was attached with a buy 20 shares and get 1 share free, however, an investor is subject to a maximum of 250 bonus shares. Meaning, an investor is only entitled to a bonus on the first 5,000 shares bought.
The incentive is open to retail investors who buy and hold the shares for at least 12 months.
Below is a step-by-step process on how to buy and own a piece of MTN Nigeria, the second most capitalised listed company in Africa’s largest economy.
How to Buy MTN Shares?
There are various channels to purchase MTN shares. Interested investors can either buy through MTN or from several approved stockbrokers, some of them are listed below.
To Buy Directly from MTN Nigeria
Interested investors should use the approved channels listed below to submit an application. You can find full details of how to submit an application at www.mtnonline.com/PO or consult with your stockbroker or banker for further guidance.
Application for MTN share Offer can also be submitted at MTN stores. The MTN MoMo agents have been trained to assist customers and provide guidance on using PrimaryOffer to submit an application.
To Buy Through the Nigerian Exchange Group (NGX)
Apply for your shares digitally through the PrimaryOffer app by NGX. Visit the PrimaryOffer website www.primaryofferng.com by NGX; or Download the PrimaryOffer app by NGX from the App Store for IOS and Google Play store for Android devices. Note that a BVN, CHN and CSCS Number is required to register and submit an application on the PrimaryOffer portal.
If your application is successfully submitted through PrimaryOffer, you will receive a confirmation email.
PrimaryOffer Application Process
- Download the app from the app store
- Click “Create an Account”
- Input your BVN
- Input your date of birth linked to your BVN
- Click “Proceed”
- Validate your information
- Create password
- Click “Submit”
- An OTP is sent to your email for verification
- Upon verification, log in with your email and password
- Select “MTN Offer”
- View details of the Offer – including the Pricing Supplement
- Input number of shares you want to apply for
- Input CSCS, CHN and Bank details for verification.
Alternatively, a CSCS and CHN will be created for you if you don’t” have a CSCS account.
- Input your bank account details and re-insert your login password for verification
- Read and accept the terms and conditions
- Proceed to Make Payment
- You will receive a notification of the successful submission in your email
To make payment on the PrimaryOffer portal, select one of the options available on the payment page, you can Pay with Card, USSD Code, Bank, Bank transfer, MVisa-QR Code, Barter, PayAttitutde, or with Paga.
If debited but payment status shows pending, forward your proof of payment to email@example.com for further review.
Buying MTN Share Via Receiving Agents
Apply for your shares through authorized Receiving Agents – Issuing Houses, Stockbrokers & Banks (applications can be completed and submitted, and payments processed at bank branches nationwide).
- An interested investor should complete an Application Form.
- Submit the completed Application Form and make payment to a Receiving Agent.
- Receiving Agent confirms receipt of payment for the number of shares applied for.
- Receiving Agent issues an acknowledgment copy of the Application Form.
- Receiving Agent submits the application on PrimaryOffer.
- Applicant receives a notification from PrimaryOffer once the application is submitted by the Receiving Agent.
If you submit an application through a Receiving Agent, the Receiving Agent will provide you with a photocopy of the completed Application Form bearing the date and time stamp. This should be kept for record and tracking purposes.
After SEC’s clearance of the allotment, the shares allotted to you will be credited into your CSCS account and you will receive an automated SMS from CSCS notifying you of the credit.
What is a Clearing House Number (CHN)?
Clearing House Number (CHN) is a unique number that identifies each investor in the Nigerian Capital Market. The CHN is alphanumeric and starts with a “C”. Accordingly, your CHN details must be provided in the “CHN Number Details” section of your application.
What is a CSCS Account?
The CSCS (Central Securities Clearing System) is a computerised depository system responsible for clearing, storing, and settlement of securities transactions in the Nigerian Capital Market. A CSCS account number is created for you by your stockbroker and can be used for buying and selling securities. Accordingly, your CSCS details must be provided in the “CSCS Account Details” section of your application.
MTN Share Offer Eligibility
Anyone above 18 years of age is eligible to buy the MTN shares on offer, but there are a limited number of conditions.
- Applicants must apply for a minimum of 20 shares and multiples of 20 shares thereafter.
- Applicants must have a valid BVN to register and submit an application on PrimaryOffer.
- Applicants must have a CHN and CSCS account.
Nigerians abroad who are interested in MTN share offer can also apply with their BVN details, also shares can be bought for another person if the beneficiary’s particulars, including BVN, CHN and CSCS account details are available. The beneficiary’s bank account details must be filled in for future e-payments, including dividends.
Facebook, Apple, Others Lose Big in Market Value
The global financial market rout has plunged the value of the world’s largest technology companies by over $1 trillion in the last three trading days. This was after the Federal Reserve raised interest rates by 0.25% last week, below the 0.75% projected by experts.
The Federal Reserve had attributed its decision to a series of global uncertainties due to the Russia-Ukraine war and extended COVID-19 restrictions in China, the world’s second-largest economy. These were a few of the uncertainties predicted by a global investment bank, Deutsche Bank to plunge the U.S and the rest of the world into a recession by 2023.
Concerns over projected recession have led to a broad-based selloff in risk assets across the world.
“When risk assets fall and fall fast enough, there’s no question they’re going to hurt growth,” said LaVorgna, who was chief economist for the National Economic Council under former President Donald Trump. “If anything, the relationship is even better when asset prices decline than when they go up.”
Apple Inc, the world’s most capitalised company shed $200 billion in the last three trading days.
While Microsoft lost $189 billion in market value. Tesla, Amazon, Alphabet, Nvidia and Meta (Facebook) lost $199 billion, $173 billion, $123 billion, $85 and $70 billion, respectively.
In only three trading sessions the “Stocks at large have sold off since the Federal Reserve raised its benchmark interest rate on Wednesday, but technology has endured more pain than other sectors of the economy.”
MTN Nigeria to Raise N150 Billion via Commercial Paper
MTN Nigeria Communications Plc on Monday announced plans to raise N150 billion via Commercial Paper (CP) to diversify the company’s financing options.
Commercial paper is an unsecured, short-term debt issued by a company to finance short-term liabilities like payroll, accounts payable, inventories, etc. Maturities of most Commercial Paper range from a few weeks to months.
According to MTN Nigeria, the N150 billion would be raised in two tranches, Series 1 & 2 commercial paper.
Explaining the reasons for the new fundraising, the telecom company said it is part of its strategy to diversify financing options. The proposed funding rasing would be deployed towards working capital and general corporate purposes.
The new fundraising would be in addition to the N200 billion commercial paper issued in 4 series in 2021.
The statement reads “MTN Nigeria Communications Plc (MTN Nigeria or the Company) hereby notifies the Nigerian Exchange Limited and the investing public of its N150 billion Commercial Paper Programme. To this end, the Company proposes the issuance of Series 1 & 2 Commercial Paper (the “Issuance”) of up to N150 billion.
“MTN Nigeria had initiated and successfully concluded 4 series of issuances under its previous N200 billion Commercial paper shelf program.
“Further details on the issuance (as well as subsequent issuances) will be communicated to the market as the transaction(s) occur.”
Abbey Mortgage Bank Lists Additional 3.692 Billion Shares
Abbey Mortgage Bank Plc, one of Nigeria’s leading mortgage banks, announced it has listed an additional 3,692,307,692 ordinary shares on Wednesday, 16 February 2022 on the Daily Official List of the Nigerian Exchange Limited (NGX).
The additional shares listed on NGX arose from the Company’s Rights Issue at 82 kobo per share on the basis of four (4) new ordinary shares for every seven (7) ordinary shares held as at Friday, 8 October 2020.
With this listing of the additional 3,692,307,692 ordinary shares, the total issued and fully paid-up shares of Abbey Mortgage Bank Plc. has now increased from 6,461,538,462 to 10,153,846,154 ordinary shares of 50 kobo each.
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