By Chinwendu Obienyi
As part of its customer-focused policy, leading investment banking group in Nigeria, Futureview Group, has urged its clients to take advantage of the planned offer for subscription of 575 million shares of MTN Nigeria through book building to beef up their portfolios.
Book building is a process by which an underwriter determines the issue price of a security through an aggregate demand of institutional investors and high net-worth individuals. Futureview Securities Limited is one of the accredited stockbrokers to the offer.
Its Group Managing Director, Mrs Elizabeth Ebi, advised clients to subscribe to the offer which opened recently.
Its Head, Corporate Finance, Futureview Financial Services, Mr Solomon Amicki, explained in a statement that MTN’s value would double after the offer because the parent company controls over 85 per cent of the mobile money market in Ghana.
“The Central Bank of Nigeria (CBN) recently granted an approval in principle to MTNN and Airtel to operate Pay Service Banks (PSB) with final approval to follow six months later, subject to specific requirements.
The value of MTN is tipped to double as MTN already has this blueprint running in Ghana and this has been very successful. The Parent company controls 85 per cent of the Mobile money market in Ghana and they raked in revenues of N84.9 billion in nine months through 2021 according to its financial statements. The MTN Momo business in Ghana is similar to what MTN would be able to do in Nigeria.
Hence, Futureview analysts are of the opinion that the huge subscriber base in Nigeria would shift the projected revenue up to N300 billion within 12months”, It said.
According to the investment firm, this new project would boost the fundamentals significantly and increase the share price above 80 per cent in the next couple of months after commencement.
“Flutterwave Paystack and Kuda Microfinance bank have tripled their valuation in the last three years by focusing majorly in the online payment space. Flutterwave is valued at over $5.4 billion and has concluded over 100 million transactions. MTN has over 65 million subscribers as at 2019 and we believe that a good chunk of these 65 million subscribers would execute more than 300million online transactions with MTN Payment service platforms at their fingertips.”