How to be MTN Nigeria Shareholder: Top MTN Shareholders in Nigeria
MTN Nigeria shares was on Thursday 16th May, 2019 listed on the Nigeria Stock Exchange (NSE) at a share price of ₦90. A total of 20.3billion ordinary shares was listed on the stock exchange.
The stock market received the news with jubilation as there has been loggerheads over the years whether or not the Nigeria’s largest telecommunication company will become a public company and her shares bought or sold from the stock market.
Implication of Listing MTN Nigeria Shares on the Nigeria Stock Exchange
In a simple term, every Nigerian and by extension, foreign investors can now own a part of MTN Nigeria when they purchase their shares from the Nigeria Stock Exchange.
Since the shares are now sold on the stock market, anyone can decide to buy shares of MTN and hold for either short or long term investment purposes.
How to be a Shareholder of MTN Nigeria
You can be a shareholder or in other words part owner of MTN Nigeria when you purchase MTN Nigeria shares.
Ways to buy MTN Nigeria Shares
There are two (2) major ways to purchase shares of MTN Nigeria or any other stock listed on the stock exchange.
- Through Stockbrokers
- Through IPO (Initial Public Offering)
Buying MTN Nigeria Shares through Stockbrokers
To purchase the shares of MTN Nigeria through a stockbroker, you need to first register with a credible stockbroking firm.
A Stockbroker is an agent with license to buy and sell stocks and bonds.
Here is the list of top 10 Stock Broking Firms in Nigeria (PDF) as quoted by NSE. The top 10 stockbrokers account for 70.46% of the total value of trades in the Nigeria Stock Exchange as at the time of writing this report. Note: This is subject to change.
When you make your choice of firm, the next step is opening an account with the firm. I advise you visit their physical office for proper account opening and documentation. Some of the stockbroking firms allow online registration and you can just have their agent contact you during account opening for proper guidance.
Once this is done, the next step is to fund your account. The fund is used by the stockbroker to purchase shares on your behalf and in your name.
Please note: The stockbroker charge a percentage of the total sum of money spent in buying shares as commission. So you should discuss the rate with them.
Remember, you should not stop at funding your account, YOU MUST INSTRUCT YOUR STOCKBROKER ON WHAT SHARES YOU WISH TO PURCHASE AND THE AMOUNT.
Buying MTN Nigeria shares through IPO
Another way to purchase MTN Nigeria shares is through Initial Public Offering (IPO).
IPO is a corporation’s first offer to sell stock to the public.
Here the company makes announcement to the general public inviting them to invest in their company by purchasing shares sometimes at a discounted offer lower than the share price in the market. IPOs are mostly done by companies to raise funds for business expansion.
MTN Nigeria was expected to have an IPO on the day of the listing but couldn’t for some reasons.
According to Pascal Dozie, Chairman of MTN Nigeria on the day of listing MTN Nigeria shares, “We were to have an Initial Public Offering today but due to unforeseen circumstances we could not. But half bread is better than none“.
How to Purchase MTN Shares through IPO
Once announcement is made by the telecommunication company through conventional and online media, banks and partner stockbroking firms where payment can be made is stated.
When you purchase an amount of stock from the designated banks or stockbroking firm, you are issued with a receipt containing the amount of ordinary shares purchased and at what rate.
A share certificate used to be issued to you after the closing of the Initial Offering.
The certificate is evidence of stock ownership which can be used to transfer your shares in part or full to another person by way of selling or inheritance. But the Central Securities Clearing System (CSCS) has completely dematerialized share certificate allowing only electronics certification.
Analysts are already projecting that the shares on MTN Nigeria will reach ₦150 in no distant time.
What is the Minimum and Maximum amount of MTN Shares one can purchase?
The minimum amount of shares you can purchase depends on the company. Most companies offer minimum shares of 1000 units during IPOs. Less than this can be purchased through stockbrokers though.
The Maximum amount of shares a prospective MTN Nigeria shareholder can have depends on the available stocks in the stock exchange.
Who are the Top MTN Shareholders in Nigeria?
Here are the top MTN Nigeria shareholders;
- Victor Odili
He is the highest MTN Nigeria’s shareholder with 808, 886,900 shares valued at ₦87.7 billion. Victor is the Chairman and Executive Director of Aeromaritime Group.
Number of Shares owned: 808,886,900
Value of Shares: $244million (₦87.7 billion)
- Pascal Dozie
Pascal is the Chairman of MTN Nigeria. He is the founder of Diamond Bank Plc, a commercial bank that was recently merged with Access bank.
Number of Shares owned: 340,409,900
Value of Shares: $102million (₦37.07 billion)
- Sani Mohammed Bello
Sani is the founder of Amni International Petroleum Development Company, a Nigerian oil exploration company.
Number of Shares owned: 265,092,150
Value of Shares: $80.1million (₦28.87 billion)
- Babatunde Folawiyo
He is the MD of Yinka Folawiyo Group, a conglomerate with interests in real estate, energy, shipping, agriculture and engineering services.
Number of Shares owned: 218,815,100
Value of Shares: $66.1million (₦23.83 billion)
- Gbenga Oyebode
Gbenga is a commercial lawyer, the Founder and Managing Partner of Aluko and Oyebode Law Firm.
Number of Shares owned: 181,776,250
Value of Shares: $55million (₦19.8 billion)
- Ahmed Dasuki
Ahmed is the Founder of Quaditect Consultants and Chairman of Drill Masters Africa, the largest indigenous exploration drilling company in Ghana. He is also the Chairman of a leading IT firm in Nigeria, Interglobal Limited.
Number of Shares owned: 152,717,850
Value of Shares: $53.75million (₦19.35 billion)
Big boys right?
In conclusion on being an MTN Nigeria shareholder
Getting hold of MTN Nigeria shares may be a bit difficult at the moment due to the fact that most of the available shares are privately owned and I doubt if those owners will be willing to sell at the moment making the stock scarce, and there are indications the price of the stock might go up before an Initial Public Offering. Remember the Scarcity Principle in Economic theory which states that a limited supply of a product coupled with high demand for that product results in a mismatch between the desired supply and demand equilibrium. In other words, the scarcity principle suggests that the price of a scarce product (MTN Shares) should rise until an equilibrium is reached between supply (seller) and demand (buyer). So you may have to wait a little while before you can become an MTN Nigeria Shareholder.
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