Investors will receive tremendous value from the MTN Nigeria deal. The shares trade at a Price/Earnings (PE) ratio of 11.6x our projected 2021 profits after taxes and at 9.1x our projected 2022 profits after taxes at the offer price.
When MTN Nigeria (MTNN) was listed on the Nigerian Stock Exchange (NSE) in May 2019, the market capitalization of the exchange increased by more than N1.8 trillion. One of the major steps forward for the Nigerian stock market was made with this.
Following a 50% increase at the end of 2020, Bloomberg declared Nigeria’s stock exchange the best-performing stock exchange in the world. The Lagos Stock Exchange outperformed 92 other stock exchanges worldwide by closing with the highest points since December 2007.
Many Nigerians wanted to invest in the telecommunications giant at the time MTN Nigeria was listed, but their options were constrained by how in-demand the shares were and the difficult process required to acquire a valued stock on the NSE. That narrative is evolving.
MTN Nigeria is releasing 14% of its tightly held shares to the Nigerian public despite being the second-most valuable firm in the country, just behind Dangote Cement.
The MTN Group owns about 79 percent of the whole MTN Nigeria share. In contrast, the group is currently offering 14% of its stock to any interested Nigerians, making it the largest member of the bourse to do so.
One advantage of purchasing MTN stock is that you may hold it as a long-term investment because MTN has no intention of leaving Nigeria. The corporation announced a public offering of 575 million shares for sale because it intends to stay in Nigeria for the foreseeable future.
The finest aspect of the arrangement is that any Nigerian can purchase MTN shares on their phone for as little as N3,380 if they have a bank verification number (BVN).
How to Buy MTN Shares on Your Phone in 10 Simple Steps
While many Nigerians are eager to own a piece of MTN, they are not eager to go through the arduous process of buying shares of a firm that is listed on the Nigerian stock exchange in their country.
After examining the procedure firsthand, TheCable can state that it is significantly simpler and less expensive to follow the procedures than the conventional methods of purchasing shares in Nigeria. Since then, as shown in the infographic above and detailed below, we have simplified it into 10 simple stages.
1. Install an app first: You would require a smartphone for this process. Visit the app store on your phone.
2. Download the App: Get the Primary Offer app for your smartphone or tablet from the Apple iOS or Google Play stores. Be aware that Chapel Hill Denham created the app. The download and installation should take less than three minutes on a strong mobile network.
3. Create an account: Using your date of birth and bank verification number, create an account. You would also need to set up your password here, which you ought to keep as secret as possible. Once completed, the app will already contain some of your information, demonstrating that it is somewhat integrated with the banking system.
4. After creating your account, you will be prompted to input your security code to validate it. You’ve already gotten an email with that code in it. To verify your account, you must enter a one-time password (OTP) into the app.
5. Sign in to start: You would see a congratulations message on your screen once your account was fully configured. Additionally, the message would include a blue login button for the app. To access the dashboard, enter your email and most recent password. After entering, select the MTN Nigeria deal.
6. Terms and Purchase: When you click on the MTN Nigeria offer, a page containing the terms and conditions will appear. Read them, and then check the box next to the purchase button if you agree to them. Click “buy” when you’ve completed that.
7. Decide how many shares to purchase: As of right now, “Enter your transaction data” should appear on your most recent screen. Put the number of units you want to purchase in the column marked “Specified Units.” 20 shares are the least that can be purchased.
The minimum application is for 20 shares, and subsequent applications can be for multiples of 20 shares, such as 20, 40, 60, 80, 100, 120, etc., according to MTN. Although there is no cap, the number of shares allotted will fall within the range of the maximum number of shares available, which is 575,000,000 common shares. The cost per share was N169. So you would require N3,380 to purchase the bare minimum of shares.
8. Pay now: Click “pay now” after selecting the number of shares and checking the box next to the terms and conditions. If you have a CSCS account, the app will inquire. The financial infrastructure for clearing, holding, and settling securities transactions is known as the Central Securities Clearing System (CSCS) account. All of your shares have their domicile there.
Click on yes if you have a CSCS account; otherwise, click on no. The course of action will depend on which choice you select. The method is easy to follow for both responses. You can process payment for the shares and set up your CSCS account with the aid of the app.
Enter your clearinghouse number and account number if you already have a CSCS account (CHN). You then select “pay immediately” after updating the information for the bank where your dividends will likely be paid.
9. Pay for the shares using a card, USSD, or transfer. When you arrive at this page, you have a variety of payment options. Select the one that works best for you—a bank transfer, card payment, or just USSD—and complete the transaction. Please be aware that bank fees will be charged, increasing your N3,380 to a total of N3,418.
10. Allotment of shares: After payment is received, you will receive a mail with your payment information and a receipt. Your shares would be allocated to you in less than 15 days after the SEC gave its approval. By following these instructions, you can quickly become an MTN shareholder.
