MTN's plan to list on Nigeria SE gains traction

South Africa's telecom giant MTN is making headlines with its plans to list on the Nigerian Stock Exchange, a move that has gained traction following a meeting with officials from Nigeria's Securities and Exchange Commission to discuss the initial public offering and share sales structure. Winston Osuchukwu, Managing Director of First Ally Asset Management, recently joined CNBC Africa to discuss the potential impact of MTN's listing on the Nigerian equities market. Osuchukwu expressed optimism about MTN's planned listing, highlighting that the company's strong performance in the Nigerian market positions it as an engine of growth and profitability. He noted that MTN's previous private placement in 2008 had been successful for investors, making the upcoming listing a highly anticipated event that could boost market activity in the first quarter of the next year. One key aspect of MTN's listing is its potential to address the underrepresentation of the telecom sector on the Nigerian Stock Exchange. Osuchukwu pointed out that while some telecom companies, like parent company MTN International, are already listed globally in major financial markets, listing subsidiaries in Nigeria may require additional incentives to attract them to the local exchange. He emphasized the importance of innovative tax policies to encourage companies to list on the exchange by offering tax benefits that offset regulatory and compliance costs. The conversation also touched on the role of government agencies, such as the Federal Inland Revenue Service (FIRS), in creating a conducive environment for companies to list on the Nigerian Stock Exchange. Osuchukwu stressed the need for agencies to provide clear incentives that demonstrate tangible benefits for companies considering listing. By reducing overall tax burdens for listed companies, policymakers can entice firms to choose the local exchange as a viable option for capital operations. As MTN prepares to unveil its objectives and market conditions for the 2017 listing, industry observers are eagerly awaiting the outcome of this strategic move. The success of MTN's listing could pave the way for other telecom companies to follow suit, marking a significant shift in sector representation on the Nigerian Stock Exchange. With stakeholders keeping a close watch on developments, the stage is set for a potentially transformative period in the Nigerian equities market.