MTN Plans Second Public Offer in Nigeria Following Projected Financial Rebound
MTN Group is preparing to reduce its stake in MTN Nigeria from 76% to 65% through a second public offering, once the company gets back on solid financial footing. MTN Group President Ralph Mupita made this known during a recent media roundtable, stressing the company’s commitment to local ownership. This move aligns with the Group’s longstanding plan to deepen Nigerian participation in the company. The proposed sell-down would follow a similar path to its successful 2021 offer, where local investors snapped up 575 million shares, ultimately increasing MTN Nigeria’s retail investor base.
The 2021 public offer drew over 126,000 investors and helped MTN reduce its stake from 78.8% to 75.6%. Pension funds and institutional players were key in that round, signaling strong domestic appetite for equity in Nigeria’s telecom sector. Back in 2022, MTN had already indicated it intended to take this stake further down to 65%. But those plans were delayed due to recent financial headwinds, including a major loss in 2024 that has placed the company in a negative equity position.
Despite growing revenue up 36% year-on-year to ₦3.36 trillion—MTN Nigeria suffered a post-tax loss of ₦400.44 billion in 2024, largely thanks to inflation and the naira’s sharp devaluation. These macroeconomic shocks severely impacted operational costs and reduced shareholder value. This downturn has seen MTN Nigeria fall behind MTN South Africa in terms of revenue contribution to the Group, prompting a strategic rethink and cautious planning for the future.
Still, Mupita remains optimistic. He’s projecting a “V-shaped recovery” in 2025, driven by structural reforms in Nigeria like fuel subsidy removal and naira stabilization. MTN believes these shifts could improve spending power and overall market conditions, creating the right environment for a renewed public offering. However, the Group made it clear that the next share sale will only happen once MTN Nigeria returns to profitability and resumes dividend payouts to investors.
Source: business day