January 21, 2025
Investors in the equities market have taking positions in MTN Nigeria Plc in the stock market with an early gain of 10%, according to data obtained from the Nigerian Exchange.
A report monitored on Marketforces Africa, showed that one hour after the trading platform opened, the telecom stock increased by 10%. Boosting MTN popularity among alpha seekers and raised its market value to a maximum allowable for the day as demand increased .
More than N1 billion of the telecom stock, exchanged hands in the local bourse during early trading hours on Tuesday
The 50% tariff hike announced by the regulator, the Nigerian Communications Commission, after a long battle for adjustment improved market sentiments
READ MORE; NATCOMS To Challenge NCC In Court Over 50% Telecom Tariff Hike.
MTN Nigeria Communications, last week, told the Nigerian Exchange Limited and the investing public of the successful completion of its Series 15 and 16 Commercial Paper issuance under the company’s N250 billion Commercial Paper Issuance Programme.
MTN Nigeria said it raised N42.20 billion. The 180-day and 270-day CP were issued at yields of 27.50% and 29.00%, respectively, with an issue date of Monday, 23 December 2024.
This follows the successful completion of two prior commerical issuances in the last two months, adding that the proceeds will be applied towards the company’s short-term working capital requirements.
REA MORE; NCC Approves 50% Tariff Increase For Telecom Operators
MTN Nigeria’s Chief Executive Officer, Karl Toriola, had said, “We are grateful for the success of this transaction, which underscores investor confidence in MTN Nigeria’s business model and management team.
“The CP Issuance is part of our established funding strategy and would not have been possible without the unwavering support of the investor community, as well as our advisers.”
Stanbic IBTC Capital Limited acted as the arranger and dealer, while CardinalStone Partners Limited, Chapel Hill Denham Advisory Limited, Cordros Capital Limited, Coronation Merchant Bank Limited, FCMB Capital Markets Limited, Meristem Capital Limited, Quantum Zenith Capital & Investments Limited, and Vetiva Advisory Services Limited served as joint dealers on the transaction
