The allocation of MTN Nigeria Communications (MTN Nigeria) Plc’s retail public offer is still awaiting regulatory clearance more than a month after the application list for the offer closed.
MTN has yet to allocate the shares to retail investors, according to sources, because the allotment plan is currently undergoing regulatory clearance assessment.
According to insiders, the Securities and Exchange Commission (SEC), Nigeria’s primary capital market regulator, is currently assessing the allotment application, and investors would be compensated as soon as the final clearance is reached.
Analysts, on the other hand, believe that the delay in regulatory permission has hampered the digitalization of the primary offer process. The Nigerian Exchange (NGXMain )’s Offer, a digital instrument intended at automating the primary issue procedure, was used for the first time in the MTN offer.
MTN Nigeria’s public offering created a new milestone being the first to be offered entirely through a digital platform, allowing for maximum investor engagement. Investors could submit applications through issuing houses, stockbrokers, banks, and online through the NGX’s Primary Offer, a unique digital application platform.
MTN Nigeria had issued 575 million ordinary shares of 50 kobos each at a price of N169 per share to the general public. The offer’s application period began on December 1, 2021, and ended on December 14, 2021.