Telecom giant, MTN Nigeria, has launched an equity book-build to qualified investors ahead of its planned sales of 575 million ordinary shares of the company to the public.
Book building is the de facto mechanism by which companies price their IPOs and is highly recommended as one of the most efficient ways to price securities. It involves generating and recording investor demand for shares before arriving at an issue price.
The launch comes after the company had obtained regulatory approval from the Securities and Exchange Commission (SEC) to proceed with the offer for sale of N575 million shares in MTN Nigeria.
MTN disclosed this in in a press statement signed by its secretary, Uto Ukpanah, and made available on the website of the Nigerian Exchange Limited (NGX).
“MTN Nigeria Communications Plc (MTN Nigeria) is pleased to announce that the Securities and Exchange Commission (SEC) has approved an offer for sale of up to 575 million ordinary shares in MTN Nigeria held by MTN International (Mauritius) Limited, by way of a book-build to qualified investors (Institutional Offer) and a fixed price to retail investors (Retail Offer),” the statement said.
The company further noted that Institutional Offer will open at 12:00pm on 23rd of November 2021 and close by 2:00 pm on 26th of November, 2021, after which a fixed price will be determined for the Retail Offer. The retail offer is proposed to open after the institutional offer.