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Africa, News

MTN Nigeria drops 10% after low IPO pricing

(Adds stock index)

ABUJA, Dec 1 (Reuters) – MTN Nigeria fell 10% to a five-week low of 171 naira on Wednesday after it set a retail public offer price that is lower than its share price on the stock market.

The Nigerian unit of South African telecoms group MTN opened its sale to retail investors on Wednesday at 169 naira per share.

MTN listed its Nigerian business in Lagos two years ago at 90 naira each to become the second-largest stock by market capitalisation.

In March 2020, its shares fell back to the listing price due to lockdowns to slow the spread of coronavirus.

The drop in MTN, Nigeria’s second biggest listed firm, pushed the main share index, down 1.73%, a three-week low.

Initial public offerings have been few in Nigeria since the 2008 global financial crisis, which wiped out more than 60 percent of the stock market’s capitalisation. (Reporting by Chijioke Ohuocha; editing by Jason Neely)

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