Chapel Hill Denham: How sale of 575mn shares will boost MTNN shareholders

MTN Group's decision to sell 575 million shares from its stake in its Nigerian subsidiary to retail investors has sparked interest and enthusiasm in the market. The move, aimed at making MTN Nigeria a compelling investment opportunity, has been met with positive reception from investors. Chapel Hill Denham, a leading investment bank, views the stock as a 'must-own' and believes that retail investors stand to benefit from the potential growth prospects of MTN Nigeria. Larry Bulluro, Managing Director of Investment Banking at Chapel Hill Denham, shared insights on the ongoing share sale and the value proposition of investing in MTN Nigeria. He emphasized the company's strong financial performance, robust revenue growth driven by data and mobile money, and a track record of dividend payments. As the sale progresses, here are key points to consider regarding the MTN Nigeria share sale: 1. Compelling Value Proposition: MTN Nigeria has demonstrated strong revenue growth and profitability, making it one of the best-run companies in Nigeria. Despite challenges in the operating environment, such as NIN registration disruptions, MTN Nigeria has continued to grow its subscriber base and revenues. The company's focus on data services, coupled with its dividend payment history, makes it an attractive investment opportunity for retail investors. 2. Share Sale Timeline: MTN Group aims to reduce its ownership in MTN Nigeria to 64.83% from 78.83% through the ongoing share sale. The company has a three-year window to achieve this target, providing retail investors with an opportunity to acquire shares in a well-established company with a strong market position. 3. Stock Price Movement: MTN Nigeria's share price has shown resilience and potential for growth, with a 52-week high exceeding 200 Naira. The current offering price of 169 Naira presents a discount for retail investors, creating an entry point to participate in the company's growth story. The increased liquidity expected post-transaction will enhance price discovery and market efficiency, benefiting both existing and new shareholders. In conclusion, the MTN Nigeria share sale represents a strategic opportunity for retail investors to gain exposure to a leading telecommunications company in Africa. With solid financial performance, dividend incentives, and growth prospects, MTN Nigeria is poised to attract strong investor interest and drive share price appreciation in the future.