When MTN Nigeria sold 575 million common shares to Nigerians for N169 a share in a solely digital offer in December 2021, the Nigerian capital market saw its first DPO.
Since then, the public offer conducted through the Primary Offer digital platform has established itself as a benchmark in the capital market.
On May 16, 2019, MTN Nigeria Communications Plc became the first mobile network operator to be listed on the Nigerian Stock Exchange when it was introduced and listed on the Premium Board.
MTN Group President and Chief Executive Officer, Ralph Mupita, speaking on the digital offer, said, “We are proud that our offer was the first Nigerian public offer to use the digital application platform, PrimaryOffer, which enabled wider investor participation across Nigeria.”
The lead adviser on the deal, Lanre Buluro, Managing Director of Capital Markets, Chapel Hill Denham, said that the digital platform was established after consulting with regulators such as the Nigerian Exchange Limited and the Securities and Exchange Commission.
“This is the first time in our market when investors far and wide, also in Diaspora can participate in an equity offer in Nigeria. With the help of our regulators, the SEC and NGX, we have created this wonderful application called Primary Offer. It is end-to-end. People should be able to buy their shares in five minutes. All you need is your BVN and your date of birth. Once you put that, your information will show up on that application.
“If you do not have a CSCS account, you can create one on that application and in 24 to 48 hours, CSCS has confirmed that they will be able to create an account for you. While doing that, you can go ahead to buy shares, put in your bank details where you will receive your dividend and when the SEC approves and shares are allotted, you will be notified and the shares will be domiciled in your CSCS account,” Buluro stated.
Following the CBN’s recent direction on the recapitalisation of the banking sector, several stakeholders have brought up the MTN digital offer, suggesting that technological adoption will enhance the new initiative.
A circular on a revised capital basis for commercial, merchant, and non-interest banks—as well as the promoters of planned banks—was sent by the CBN in March.
The central bank instructed commercial banks having international authorisation to raise their capital bases to N500 billion, national banks to N200 billion, and commercial banks with regional authorisation to N50 billion.
Additionally, non-interest banks that hold regional and national authorizations must raise their capital to N10 billion and N20 billion, respectively.
“Additional Tier 1 Capital shall not be eligible for the purpose of meeting the new requirement. All banks are required to meet the minimum capital requirement within a period of 24 months commencing on April 1, 2024 and terminating on March 31, 2026. Notwithstanding the capital increase, banks are to ensure strict compliance with the minimum capital adequacy ratio requirement applicable to their license authorisation. In line with extant regulations, banks that breach the CAR requirement shall be required to inject fresh capital to regularise their position.”
