Futureview group urges investors to utilise MTNN public offer

Futureview Group has urged its clients to take advantage of the planned book building offer for 575 million shares of MTN Nigeria Communications Plc (MTNN) in order to diversify their portfolios.

Mrs Elizabeth Ebi, Group Managing Director of Futureview, gave the charge in a statement signed by Mr Solomon Amicki, Head of Corporate Finance at Futureview Financial Services, on Tuesday in Lagos.

Book building is the process by which an underwriter determines the issue price of a security by aggregating investor demand.

She stated that Futureview Securities Ltd., an investment firm, was one of the accredited stockbrokers to the offer, advising clients to keep an eye out for the offer this month.

She predicted that MTN’s value would more than double as a result of the offer, citing the parent company’s control of more than 85% of Ghana’s mobile money market.

“The Central Bank of Nigeria recently granted MTNN and Airtel preliminary approval to operate Pay Service Banks (PSB), with final approval expected in six months subject to specific requirements.”

“The value of MTNN is expected to double because it already has this blueprint running in Ghana, which has proven to be very successful.” According to its financial statements, the parent company controls 85% of the Ghanaian mobile money market and earned N84.9 billion in revenue in the nine months through 2021.

“The MTN Momo business in Ghana is comparable to what MTN could do in Nigeria.”

“Futureview Analysts believe that Nigeria’s large subscriber base will boost projected revenue to N300 billion within 12 months.”

“We also believe that this new project will significantly improve the fundamentals and raise the share price above 80% in the first few months after it begins.”

“In the last three years, Flutterwave, Paystack, and Kuda have tripled their valuations by focusing primarily on the online payment space.” Flutterwave is worth more than 5.4 billion dollars and has completed more than 100 million transactions.

“MTN has over 65 million subscribers as of 2019, and we believe that a significant portion of these 65 million subscribers will conduct over 300 million online transactions with MTN Payment service platforms at their fingertips,” she said.