Many Nigerians are not happy that they are yet to have the CLEAR ability to buy the shares of MTN Nigeria on the Nigerian Stock Exchange. MTN had listed via Introduction which means unlike the typical IPO, the holders of the shares are not obviously obliged to make the shares available for trading. Technically, it was listed publicly but not evidently tradable publicly. That the Securities and Exchange Commission (SEC) is investigating this is not great news because Nigeria has listing by introduction in the books. That MTN decided to use it should not be handled with bad blood. I understand the frustration – everyone wants to get into the game but right now you need to know big connectors before you can get the shares. Largely, it is not really public since without knowing the current holders, you will be out of luck to buy the shares.

The Securities and Exchange Commission (SEC) is investigating the process that led to the listing of MTN Nigeria on the Nigerian Stock Exchange (NSE) last Thursday, THISDAY learnt yesterday.
A source said the application of the telecom firm was initially turned down by the NSE Council before it was later reconsidered, without the authorisation of SEC

[…]

“For Listing by Introduction, you are not obliged to make shares available to the market to buy at all. For Listing by Introduction, shareholders that were existing prior to the company being listed have the opportunity to trade their share.
“So, if you are not a shareholder of MTN Nigeria prior to the listing, you will not be able to sell any share. You only buy from willing sellers in the market,” the source added.

The implication of this listing path was well documented. I did write thus “MTN Nigeria is arriving on the floors of the Nigerian Stock Exchange (NSE) via a special gbaam – listing by introduction and not through the typical IPO (initial public offer). Simply, the company will list already existing shares without any requirement to issue new ones or raise new funds”. Simply, MTN Nigeria has planned not to raise new funds and that means it is possibly not going to trade shares. Nigeria knew this and approved its papers. MTN followed the books – and tested elements which many have not used. We should not make life hard for it.

Comparison between IPOs and Listings by Introduction:

What needs to happen is that SEC needs reforms. It is SEC that needs help so that we can examine our market rules to be sure they are up to date as our economy has been redesigned since those rules were written. On this one, Nigeria needs to allow MTN to have peace. This company never wanted to raise money from any listing. Magically, it saw a way to comply with the listing requirements without messing up with its share structure. It did that – and it is not a crime because everything it did is in the books. If you hate the style, go and change the market rules! A simple line – “If you list by introduction, you must make 5% available for public trading” – will fix this in future.

In the last 10 centuries, China dominated at least 7 economically. India had effervescence. England experienced same. Then America took over. As the new order evolves, the messages of Schumpeter and Adam Smith will become evident. Schumpeter’s “creative destruction” and Smith’s “comparative advantages” will be tested. China is creatively outcompeting all, and can do everything. Largely, its destiny is assured: back to the top. But America will give its best – expect economic warfare ahead.

Google Restricts Huawei’s Use of Android; Huawei Responds with Statement

This is a big one for all the noise of one world and one global family – it seems it works when some are winning and others are asking for aids. Provided that order stays that way, the winners will be happy. But when the others begin to rise, then tension will rise. So, it was shocking that Google, obeying order from above, is restricting Android from Huawei. BBC explains it thus as “Google launches the next version of Android later this year, it may not be available on Huawei devices.”  Recently, Huawei was added in the dreaded “entity list” which will restrict its capacity to import technologies from U.S.

Google has barred the world’s second biggest smartphone maker, Huawei, from some updates to the Android operating system, dealing a blow to the Chinese company.

New designs of Huawei smartphones are set to lose access to some Google apps.

The move comes after the Trump administration added Huawei to a list of companies that American firms cannot trade with unless they have a licence.

Google said it was “complying with the order and reviewing the implications”.

Huawei said it would continue to provide security updates and after sales services to all existing Huawei and Honor smartphone and tablet products covering those have been sold or still in stock globally.

“We will continue to build a safe and sustainable software ecosystem, in order to provide the best experience for all users globally,” it added

Of course China is not innocent itself, lacking to understand that global markets cannot treat it the way it was treated 30 years ago. It has to make concessions for other countries to also rise. Its stubbornness in refusing to recalibrate its economic architecture (by reducing state capitalism) will affect nations like Nigeria, Ethiopia, and Rwanda from rising. While U.S. may be brash in its tactics, China needs to understand it is a big boy on the global table and needs to make changes for the small guys to have seats.

For Huawei, maybe there is a plan B after all the big talks. You have an opportunity to show the world. You said you have planned for this ban; the opportunity is here to show your customers that nothing has changed.

In the short term, I expect Huawei to lose market share in the consumer mobile device market. Huawei response to the ban below:

“Huawei has made substantial contributions to the development and growth of Android around the world. As one of Android’s key global partners, we have worked closely with their open-source platform to develop an ecosystem that has benefitted both users and the industry.

Huawei will continue to provide security updates and after-sales services to all existing Huawei and Honor smartphone and tablet products, covering those that have been sold and that are still in stock globally.

We will continue to build a safe and sustainable software ecosystem, in order to provide the best experience for all users globally.”