MTN Nigeria Communications Plc has announced on the Nigerian Exchange Limited (NGX) that it will be issuing bonus shares to investors who participated in its Initial Public Offering (IPO) in January 2022 and meet the conditions for entitlement. The Nigerian subsidiary of Johannesburg-based MTN Group Limited had a successful IPO, with shares being oversubscribed by 139.5% and an additional 86.3 million shares being allocated as a result.

MTN Nigeria Communications, a subsidiary of the telco giant MTN Group Limited, has announced plans to allot bonus shares to eligible investors who participated in its Initial Public Offering (IPO) in January 2022. The company had set out to sell 575 million ordinary shares but ultimately allotted 661.3 million shares to both retail and institutional investors. The terms of the offer included a one-to-twenty ratio of bonus shares, with a maximum of 250 ordinary shares allotted per eligible investor. In order to qualify for the bonus shares, investors must have held a portion or all of the shares allotted to them from the IPO as of January 31st, 2023, and have their names appear on the company’s register of members on that date.

According to a statement on the Nigerian Exchange Limited (NGX), qualified shareholders will have their bonus shares credited to their Central Securities Clearing System (CSCS) accounts after the qualification date and after obtaining the necessary regulatory approvals. The IPO saw a significant influx of new market participants, with 114,938 new CSCS accounts opened, and a large portion of successful applicants being women and young people, with 76% of applications made via digital platforms coming from women and 85% of successful applicants being under the age of 40.

Source: ThisDay Live

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