Capital market stakeholders Monday slammed the listing of MTN Nigeria Communications Plc on the Nigerian Stock Exchange (NSE), despite the  lack of a mandatory 20 per cent free float.

This was even as they warned on Monday that the price of MTN Nigeria shares would continue to skyrocket due to their scarcity to the detriment of retail shareholders.

The stakeholders blamed the Nigerian Stock Exchange (NSE) for approving the company’s listing without the mandatory free float.

Free float or public float refers to the shares of a company that can be publicly traded and are not restricted. In other words, the term is used to describe the number of shares available to the public for trading in the secondary market. The free float for companies listed under NSE Premium Board is 20 per cent.

Mr. Ambrose Omordion, the Chief Operating Officer, Invest Data Ltd., for instance, expressed disappointment at the development, saying that the listing was at the expense of retail shareholders.

He argued that market regulators should be committed to the protection  of retail investors  to encourage their participation in the  market.

He claimed that the shareholding structure of MTN Nigeria showed that the 23.92 per cent said to be floating were held by institutional and individual high net worth investors.

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According to him, the investors are using the exchange to enrich themselves at the expense of retail investors who want to be part owners of the company.

“The 20 per cent minimum free float is one of the listing requirements, but it seems to be a post-listing requirement since companies are listed and given time to meet the minimum free float.

The founder of Independent Shareholders Association of Nigeria (ISAN), Mr. Sunny Nwosu, described the listing as  dissatisfactory.

Meanwhile, the Nigerian Communications Commission (NCC), yesterday admitted that MTN Nigeria Communications Limited has paid a total of N235 billion out of the N330 billion fine imposed on it in August 2015 by the Commission.

Executive Vice Chairman at NCC, Prof Umar Danbatta, confirmed this in an interview with journalists in Abuja on Monday at a valedictory press briefing by Minister of Communications, Mr Adebayo Shittu.

According to him, from the settlement agreement of N330 billion reached with MTN, they have paid N235 billion, remaining the last tranche.