MTN Nigeria Communications Plc has announced the successful allotment of incentive shares to qualified shareholders as promised to those who participated in its December 2021 offer for sale. 

The company announced the latest development in a corporate action that was signed by Company Secretary  Uto Ukpanah, as seen by Nairametrics. 

More details: Shareholders who qualified for the incentive shares included those who purchased and were allotted at least 20 ordinary shares in the offer; held some or all the shares allotted at the offer as at the qualification date,31 January 2023 but subject to holding at least 20 ordinary shares ; and whose names appeared in the register of members at the qualification date. 

MTN Nigeria noted that 120,359 investors, representing 94.77% of those who participated in the offer, qualified to receive the incentive shares totalling 3,977,418 ordinary shares of MTN Nigeria. This brings the total shares allotted through the offer to approximately 665.23 million. 

  • “The incentive shares have been credited to the Central Securities Clearing System (CSCS) accounts from the shares held by MTN International (Mauritius) Limited , in line with our ambition of creating shared value for our shareholders,” the statement noted .

The backstory: Recall that the offer was completed on 31, January 2022, the date on which the Securities and Exchange Commission (SEC) cleared the offer allotment. 

The offer included an incentive of one ordinary share for every twenty ordinary shares purchased and allotted up to a maximum of 250 ordinary shares to encourage retail participation. 

As disclosed in the Offer Prospectus, the incentive became effective on January 31, 2023 being 12 months following the SEC’s clearance of the offer allotment. 

126,720 retail investors submitted valid applications and received full allotment during MTN Nigeria’s first public offer for sale of 575 million shares which recorded an oversubscription of 139.47 per cent.