The Securities and Exchange Commission has said it is not
probing MTN Nigeria Communications Plc over its listing on the
Nigerian Stock Exchange.
SEC alleged that some stockbrokers were instigating false media
reports.
The SEC spokesperson, Mrs Efe Ebelo, told our correspondent on
Tuesday that the commission had approved MTN’s listing last week
and had no issues with it.
The acting Director-General, SEC, Ms Mary Uduk, said last week
that MTN sought to come to the market by way of an introduction and
they wrote to SEC the previous week requesting for approval to
register its existing shares.
Uduk stated that the approval had been granted, describing the
approval as a further indication of the determination by SEC to
work with companies interested in the capital market.
She said, “We believe that this will also encourage other
service providers to come to the market.”
Ebelo said any issue surrounding MTN’s listing was between the
telco and the NSE as SEC held nothing against it.
She, however, said SEC might be forced to intervene in the
matter if necessary.
The NSE, in a statement on Tuesday, said it had not received any
communication from SEC indicating that “it is probing the Exchange
in connection with the listing of MTN Communications Nigeria Plc or
any other matter.
“The Exchange’s position is, thus, that those reports are
inaccurate.”
The NSE had said on Monday that its attention had been drawn to
a few critical issues raised in various print and social media
platforms regarding the listing of MTN Nigeria on the Premium Board
of the Exchange.
It said because MTN Nigeria listed by introduction, its shares
were expected to be available for trading on the day of listing,
adding that no MTN shares had been offered for subscription by the
company prior to listing.
According to the NSE, without any intervention, it is possible
that there will be no shares available for trading on the listing
date.
On the issue of the scarcity of shares claimed by some reports,
the NSE said, “Indeed, currently, no rule of the Exchange compels
shareholders in a listed company to tender their shares for
trading. Shareholders are at liberty to trade their shares at any
time and price suitable to them.
“Thus, in order to stimulate trading in the shares of companies
that list by introduction, the NSE’s practice is to urge the
company to make shares available on the day of listing. In the case
of MTN Nigeria, the NSE had requested the company as part of the
listing process to make shares available and the Exchange expects
the company to do that.”
The bourse noted that since the listing of MTN Nigeria last
Thursday, a total of 105,301,759 shares valued at N12.231tn had
been traded in three days.
These trades, it said, were carried out by 10 dealing member
firms in 134 cross deals/negotiated deals.
The NSE said because cross deals involved clients of the same
dealing member firm on both sides of a trade, significant issues
had been raised that dealing members who had not been involved in
the cross deals had been unable to trade on behalf of their
clients.
“The Exchange is not unconcerned about this state of affairs.
Indeed, council members of the Exchange urged brokers to discuss
with their clients about possible sales of shares,” it added.
The NSE also said there appeared to be a misconception that a
concession was given to MTN Nigeria on the minimum free float
required for companies listed on the Exchange.
It stated that the Exchange’s rules for listing on the Premium
Board required a company to have a minimum free float of 20 per
cent of its issued share capital or that the value of its free
float be equal to or above N40bn on the date the Exchange received
the issuer’s application to list.
The NSE said, “MTN Nigeria met with the free float requirement
of N40bn. The free float of MTN at the time of listing was in
excess of N90bn.
“While we believe we have addressed the concerns raised, we
would like to assure our stakeholders and the general public that
the Exchange will continue to uphold global best practices in its
business operations and will sustain engagement with its
stakeholders to continually develop regulatory frameworks that
ensure our market completely reflects our values of ambition,
fairness and inclusion.”
MTN said its listing by way of introduction on the NSE created a
new telecoms and technology asset segment for the NSE.
According to a statement issued by the company on Tuesday, its
listing on the premium board is because it met all the requirements
to list on the board.
It stated that its listing meant that existing shares of MTN
Group (78.8 per cent) Nigerian investors (19.4 per cent) and other
investors (1.8 per cent) would be listed, adding that shareholders
were free to trade their shares on the NSE if they so wish.
Subscribe ToNairalaw News!
Read more sec-denies-probing-mtns-listing-nse-defends-process/