It is very interesting that people still believe that MTN will file paperwork to go public this year in Nigeria. If MTN goes ahead and lists in Nigeria this year, it would be a huge fiduciary irresponsibility as I have noted.
MTN Nigeria was to list on the Nigerian Stock Exchange in 2017. It was later moved to 2018. I have done my research as we wait the prospectus of the initial public offering. But when that did not happen before June 2018, my conclusion is that MTN Nigeria would not list on NSE in 2018.
It is simple – doing so would be carelessness when a presidential election is on the horizon. Elections in Africa typically bring uncertainties, triggering devaluations of equities across markets. So, for MTN Nigeria, I do think the strategists would move this IPO to Q2 2019 to happen after the election.
If I am advising them, that would be the first point on slide. Going public in 2018 will cost you 15%-20% because of the looming presidential election in Nigeria which will depress international & Nigerian diaspora interests.
There is something structurally deficient in Nigeria right now. We have lost any element of core principles at senior political leaderships, at both national and local levels. When such happens in a nation, especially at a developmental phase where humans are largely the institutions, investors are rattled. Now, not listing in 2018 seems to be official as Securities and Exchange Commission (SEC) has confirmed that it is yet to receive any document from MTN. Even if MTN files the paperwork next month, it may be late as by the end of November, markets will begin to slow down for Christmas break. Simply, three months will not do it, and that means expect this IPO next year. And the wait continues since 2017.
Acting Director-General of the Securities and Exchange Commission (SEC), Mary Uduk has tasked MTN Group on official filing of the Initial Public Offering (IPO) prospectus to the commission.
Uduk, while reacting further over recent media reports that MTN Nigeria is good to go with the Nigeria Listing, stated categorically that neither MTN Nigeria Limited nor any of its advisers or representatives has filed any application on the IPO with the commission.