MTN Nigeria Communications Plc has begun an equity book-building to qualified investors in preparation for the sale of 575 million ordinary shares in MTN Nigeria held by MTN International (Mauritius) Limited.
The company announced this after it got regulatory approval from the Securities and Exchange Commission (SEC).
This was disclosed by the company’s secretary, Uto Ukpanah, in a statement made available on the website of the Nigerian Exchange Limited on Tuesday.
Book Building is a process that assists companies to determine the price of their shares, with the help of investment bankers, when offering them in an Initial Public Offering (IPO).
It is recommended by stock exchanges and regulators because it is the most efficient mechanism to price securities in the market.
MTN had announced the opening of a public offering for its shares and a bid from institutional investors in a transaction totaling 575 million units.
MTN Nigeria posted revenue in excess of N1.2 trillion for the period from January to September on the back of Nigerians’ fast-increasing demand for data.