Telecom giant, MTN Nigeria, announced Tuesday the opening of N97 billion public offer to largely retail investors for the sale of N575 million shares at N169 per share. The offer will close December 14.

Its Chief Executive Officer, Mr Karl Toriola, told newsmen in Abuja that the “Retail Offer’’ which is to be delivered via a digital platform is the first in Nigeria, because the “success and growth of MTN Nigeria are intrinsically linked to that of Nigeria and Nigerians. Therefore, we are very excited to offer Nigerians the opportunity to own shares in MTN Nigeria.”

Toriola said that by using the power of technology, MTN aims to facilitate the maximum possible participation by Nigerian investors, adding that the minimum subscription would be for 20 shares and subsequent subscriptions would be in multiple of 20 shares.

He said the offer was open to retail investors, who bought and held shares allotted to them for at least 12 months post allotment date.

Toriola further explained that the offer is the second stage in a phased programme designed for Nigerians participation in the value creation of MTN Nigeria. He said the company had In May 2019, listed it by introduction, leading to the current offer opening.

According to him, the purpose of the offer was to “really diversify our shareholding, specifically with the focus on retail investors, to bring them into our shareholding base so they can share in the creation of value that we see in the next 20 to 40 years coming of MTN Nigeria in this great country.”

The CEO explained that the offer is a way of giving back to Nigerians for their support over the years that has yielded the company’s massive growth.

“We have a very strong balance sheet. We genuinely want the broad base of retail shareholders in our investor base. And there are lots of shares on offer. I believe everyone should participate and I believe that the majority of people would be able to get some shares in the offer.

“Our journey to becoming the largest network in Nigeria has been humbling but we still have a long way to go. There is much more to do to support the evolution of an inclusive digital economy and we continue to invest as we evolve into a truly digital operator, capable of seamlessly interrogating value across the evolving telecommunications, digital and fintech segments,” he said.

Investors would be able to submit applications through the issuing houses, receiving agents, including authorized stock brokers and Nigerian banks, and online via unique digital application platform primary offer administered by the Nigerian Exchange Limited (NGX).

Speaking on the offer, MTN Group President and Chief Executive Officer, Mr Ralph Mupita, said the offer aligned with MTN Group’s strategic priority to create shared value.

“In the last 20 years, we have worked diligently to connect 68 million subscribers onto voice and data networks and ensure that we deliver the benefits of a modern connected life.

“With this offer, we will contribute to further deepening of Nigeria’s equity capital markets. It is the first in a series of transactions as the MTN Group implements its plan to ensure broad based ownership by reducing its shareholding in MTN Nigeria to 65 per cent over time.

“We thank the Nigerian authorities for the support we, as MTN Group, have received in the various approvals related to this offer and remain committed to play our humble role in digital and financial inclusion across the country over the medium term,” he said.

Chief Financial Officer, MTN Nigeria, Mr. Modupe Kadri, said MTN Group, with its track record of declaring 80% of its profit as dividends, MTN has determined to sell about 14% of its share in MTN Nigeria to Nigerians, giving everyone the opportunity to own a share.

He explained that, starting Tuesday, 90% of the total offer is reserved for retail investors while 10% goes to institutional investors. He said the MTN Group is ready to bring in addition, 15% more shares to the offer in the event the 575 million share were oversubscribed, making the offer to a possible 661 million shares.

Expressing optimism on the offer, The CEO of Nigerian Stock Exchange Ltd., Mr Temi Popoola, said there was no doubt in the success of the transaction, and that it will boost investors’ confidence and increase the number of investors exchange in the capital market and end-to-end digital transactions.

“One of the things that excite us about this is investors’ confidence. This will change the face of the capital market investment of the nation,” he said. “For a long time we have spoken about the absence of retail in our capital market, particularly at the Exchange. We have spoken about the absence of certain demographic and geographic representation of Nigerians.

“This deal will address confidence, financial literacy and a lot of publicity that will come with this will drive this confidence,” he added.

Your business mission is to deliver value to customers. But it is also important that while doing that, you capture value for yourself. Companies which fail to capture value die. It is not just enough to disrupt the sector; you must capture value during the redesign. In Harvard Business Review, I explained how firms can capture that value through new business models like the Double Play Strategy. Simply, you must have a playbook where value, for you, will come even as you deliver value to your customers?

Do not be like Skype which found a way to deliver value for users, destroying aggregated value for telecom firms,  but has struggled to capture any decent value for itself. 

Pick the pencil, look at the business and ask yourself: “value is being created for users here and here but where am I getting my own value as a business?” If you cannot see a clear roadmap, question the hypothesis of that business model. Yes, you cannot make customers super-happy and go out looking at bankruptcy.

The most important job of a CEO is to design, develop and execute a business model. You can have the same products and services but a different business model can deliver different outcomes. So, pay attention to your business model!