Impact of MTN’s listing on Nigerian Stock Exchange

The Nigerian Stock Exchange (NSE) is abuzz with anticipation as Africa's largest telecommunications company, MTN, gears up to list on the bourse later this year. With an estimated market capitalization of $21 billion on the Johannesburg Stock Exchange (JSE) and its Nigerian arm contributing significantly to the business, analysts project MTN's valuation on the NSE to be around $10 billion. Lami Adekola, Co-founder and Director at Hamilton and George, joined CNBC Africa to shed light on the potential impact of MTN's listing on the NSE. Adekola highlighted that the journey towards MTN's listing on the NSE stemmed from negotiations over regulatory fines. The company, which saw its fines reduced from $5.2 billion to approximately $1 billion, is now focusing on fulfilling the necessary requirements for the listing. Adekola pointed out that one of the initial steps involves converting MTN into a public limited company (PLC). This transition is essential before the company can proceed with the listing process. By going public, MTN aims to raise capital to settle the outstanding fines and enhance its capital structure within Nigeria. Despite potential delays in the listing timeline, Adekola expressed confidence that MTN's listing would likely materialize within the year. He emphasized the importance of MTN's listing as a means to strengthen the company's presence in the Nigerian market and foster a more inclusive ownership structure. By allowing Nigerian investors to participate in the business, MTN can solidify its commitment to the local economy and build trust among stakeholders. Reflecting on the challenges MTN faced in the past, including allegations of illegal fund repatriation and the fallout from xenophobic attacks in South Africa, Adekola noted that the company has made significant strides in overcoming these obstacles. He believes that MTN's listing on the NSE signifies a new chapter for the brand, one that is focused on growth and financial transparency. Additionally, Adekola highlighted the ripple effect MTN's successful listing could have on other foreign businesses operating in Nigeria. He sees MTN as a trailblazer that could inspire other companies to consider opening up their ownership to local investors. As MTN prepares to make its debut on the NSE, all eyes are on the company to set a positive precedent for foreign listings in Nigeria. The NSE stands to benefit from increased market activity and investor confidence, while Nigerian investors have the opportunity to partake in the success story of one of Africa's telecom giants. With the potential for a $10 billion valuation, MTN's listing could pave the way for a more vibrant and diverse stock exchange landscape in Nigeria.