MTN Nigeria Rakes-in N12.2bn in three-day Bullish Trading

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Following a successful listing of shares of MTN Nigeria last Thursday, investors of the company have accumulated over N12.2 billion worth of shares, the Nigerian Stock Exchange (NSE) has revealed.

The shares have traded for three consecutive days recording a 10 percent (the highest growth a stock could increase on a daily basis) uptick at the close of trade each day.

Although investors have expressed frustration over the non-availability of the stock for purchase, analysts explained that the scarcity of the stock is the reason behind the share price upward trend as its demand continues to overwhelm outpace supply.

Also Read: MTN Listing Break 9-day Stock Market Bearish Performance

Giving clarity on the supply of the stock, the NSE in a statement released in the late hours of Monday, May 20, explained that due to the kind of listing MTN Nigeria did, which was to be listed by introduction, no shares are expected to be offered for subscription by the company prior to listing. 

“Thus, without any intervention, it is possible that there will be no shares available for trading on the listing date,” NSE said.

The exchange explained that an Initial Public Offering (IPO) usually comes after a listing by introduction. During the IPO, shares are expected to be available for trading on the day of listing.

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, the NSE further clarified.

The NSE however noted that in order to stimulate trading in the shares of companies that List by Introduction, its’s practice is to urge the company to make shares available on the day of listing.

It said with MTN Nigeria, a request to make shares available was made as part of the listing process of which the Exchange expects the company to do that.

Since the listing of MTN Nigeria on Thursday, May 16, 2019, a total of 105,301,759 shares valued at N12,231,997,316 have traded in three days. These trades were carried out by ten dealing member firms in 134 cross deals/negotiated deals. 

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