…As Investors lament free fall in share prices, ASI loses 24%***

MTN Group’s unit in Ghana raised 1.1 billion cedis ($236 million), selling about a third of the shares made available in an initial public offering, according to a document seen by Bloomberg.

MTN, Africa’s biggest mobile-phone company by subscribers, sold 1.5 billion securities of the initial agreed 4.6 billion shares at 75 pesewas each, when it offered a 35 per cent stake in the unit in May.
Accordingly, the shares will be listed on the Ghana Stock Exchange, with trading due to start September 5, as contained in the sale’s prospectus.

Regrettably, the Africa’s biggest mobile-phone company by subscriber, has failed to fulfill regulatory requirement that will enable it list the Nigerian unit, estimated at $5.23 billion on the Nigerian Stock Exchange (NSE), as earlier promised by the Group.

The Securities and Exchange Commission (SEC) had in a recent press briefing, in Lagos, stated that neither MTN Nigeria Limited nor any of its advisers or representatives has filed any application on the IPO with the commission.

The telecommunications giant, had in July 2016, announced that its board has resolved to proceed with preparations for a listing of its shares on the Nigerian Stock Exchange (NSE).

The mobile operator said the IPO will go ahead “as soon as commercially and legally possible”, and that it had established a management task team with the responsibility to guide the company towards the listing.

According to pre-IPO documents seen by an international online news platform, MTN was to list its Nigerian unit worth $5.23 billion by July 2017.

It plans to raise at least $400 million from the IPO to pay preference shareholders and go on a roadshow between May and June.

But with the way and manner MTN was handling the issue, operators have expressed doubts over the possibility of MTN’s IPO and subsequent listing on the Nigerian Stock Exchange (NSE) this year.

The Managing Director, APT Securities and Funds Limited, Malam Garba Kurfi, said that MTN was dragging the issue because of the way and manner things were handled in the country.

“I will not be surprise if they come with another excuse to shift the offer to next year as there is nothing on the ground to confirm their seriousness.

An economist, Johnson Chukwu, in an interview with The Guardian, said unless Nigerian government adopts what is obtainable in other emerging countries, multinationals like MTN, will not list on the Exchange.

“For multinationals, Nigeria must consider what Ghana did. Before Ghanaian government issued a 4G license to MTN, they included as part of the issuance that MTN must have its operations listed in Ghana Stock Exchange within 15 months of securing the 4G.”

The Publicity Secretary of the Independence Shareholders Association, Moses Igbrude, said: “ MTN, other telecommunications and oil majors in the upstream industry, which are not listing are caused by government.”

In the meantime, stock market investors lost values worth more than N2.8 trillion to uncertainties and tension within the nation’s political space

This is against expectations by some analysts that the positive trend witnessed in the capital market in 2017, would spur market activities in 2018.

The loss, in a six-month period, derived from the difference between N15.549 trillion market capitalisation recorded at the end of transactions in February 28, 2018 and market capitalisation, at the close of transactions, as at the end of August, at N12.722 trillion.

This is N2.827 trillion or 22 per cent loss.

Also, the All-Share Index (ASI) declined by 8,482.09 points or 24 per cent to 34,848.45 points from 43,330.54 points achieved as at February 28, 2018.

Investors, who are currently counting loses, urged politicians to desist from unguarded utterances capable of heating up the polity and impacting negatively on the stock market.

Specifically, the Association of Stockbroking Houses of Nigeria (ASHON), in a letter signed by the General Secretary, Sam Onuokwe, stated categorically that the political tension and uncertainties witnessed in the country is currently affecting investors’ sentiments, asset valuations, and portfolio allocation.

According to the group, foreign portfolio investors and their indigenous counterparts have embarked on massive share sell off and other financial instruments, despite improved performances of many listed securities.

The group urged the political class to moderate their activities and utterances by acting in such a manner that will boost investors’ confidence and grow the economy.

The association also suggested that the political class, rather than indulge in unwholesome activities and destructive utterances, should support all efforts aimed at creating the much-needed enabling environment for accelerated economic growth and development.

“We wish to express our appreciation to numerous investors in our markets for their resilience and confidence in the Nigerian economy and urge them not to panic.

We are confident that the on-going downswing on the securities market will be short -lived, as our market fundamentals remain strong.

“Shares of many listed companies are undervalued, selling below their intrinsic values.

There can be no better time to beef up portfolios in anticipation of superior Returns On Investment (ROI),” the association noted

After the January and mid February rally, the market recorded unprecedented reversal in performance, contrary to analysts’ predictions.

The stakeholders who spoke in an interview with The Guardian argued that the market is steered by the fallout of electoral activities, which triggered massive sell-off and cause further damage to the entire stock market.

They noted that there are strong indications that the political situation would be worse, noting that this unprecedented level of tension portends likely breakdown of law and order in the 2019 general elections.

According to the stakeholders, the trend is expected to continue in the second half of the year, even as elections are likely to dominate near-term activities, thereby inducing greater economic uncertainty and distraction in policy formulation and governance.

These projections have aggravated a widespread apathy to investments, especially on the part of the foreign investors.

The President of Progressive Shareholders Association, Boniface Okezie, said: “The markets will continue to slide downwards in the months to come, because we have learnt nothing at all after the meltdown, compared to other countries, with their economies now doing pretty well in all ramifications.

Guardian NG