At the time that MTN Nigeria was listed on the Nigerian Stock Exchange (NSE), a great number of Nigerians were interested in making financial investments in the massive telecommunications company.
However, their options were severely constrained due to the fact that the shares were so closely held as well as the rigorous process that was required to acquire valuable stock on the NSE.
MTN Nigeria is offering 14 percent of its closely held shares to the general public in Nigeria, despite the fact that the company is the second most valuable in the country, after only Dangote Cement.
For those interested in buying MTN shares in Nigeria, MTN Group owns roughly 79 percent of the total share that is available for purchase in MTN Nigeria.
The company, on the other hand, is in the process of selling off 14 percent of its stock to any number of Nigerians who have a desire in doing so; this makes it the largest member of the market to make such an offer.
Because MTN shares have been listed on the Nigerian Stock Exchange, they are now available for trading on a daily basis between buyers and sellers. This was not conceivable in the past since its investors kept their shares in private hands.
However, that has changed. Before the IPO in Ghana took place a year ago, the only country in which buying MTN shares was possible was in South Africa.
Here, we offer a quick step-by-step guide to buying MTN shares in Nigeria.
How to buy MTN shares in Nigeria: step-by-step
You can easily buy MTN shares on the Nigerian stock exchange by following the steps below:
- Make a financial investment by depositing funds into your stock brokerage account.
- Give your stockbroker the instruction to buy for you at the price that you have set.
- You also have the option to acquire shares for yourself if you use the same stock brokerage account to manage an online trading account.
- If you use the internet portal, you will put your bid, and then you will wait in the hopes that an offer will become available for you at the appropriate price, at which point you will have a deal.
- You have just purchased shares in MTN, and your stockbroker sends you an email to confirm the purchase.
Advantages of buying MTN shares in Nigeria
MTN Nigeria is a large firm that has reported massive profits that total more than N160 billion. It was mentioned in the most recent investor conference that the company reports a return on equity of approximately 90 percent.
This indicates that it generates a profit of N90 for each equity investment of N100 that company makes. That has never happened before with any publicly traded corporation in this nation.
MTN further asserts that it distributes more than 80 percent of its income to shareholders in the form of dividends. It is also possible that it will list at N90 (and is expected to grow as investors stampede for the shares), which would place it at a price-earnings multiple of 11x.
The fact that both its revenue and its profits have increased by double digits indicates that this is actually a very reasonable pricing.
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