JSE-listed telecommunications powerhouse MTN’s plan to list its subsidiary MTN Nigeria on the Nigerian Stock Exchange (NSE) will go ahead on May 16.

MTN Group on Wednesday said it had received approval for the listing on the NSE Premium Board. The listing will create a new telecoms and technology asset segment for the NSE.

In a statement, the company said it would pursue an initial introductory listing, with the existing shares of MTN Group (78.8%), Nigerian investors (19.4%) and other investors (1.8%) without the additional public sale of shares.

That means that all MTN Nigeria shareholders will be free to trade their shares on the NSE.

“This is just the beginning, we still intend to pursue a future public offer, giving more Nigerians greater access to the MTN opportunity,” assured MTN Nigeria CEO Ferdi Moolman.

“As MTN Group, we are very pleased that we are taking this first and important step towards increasing the local ownership of the company and building the equity capital markets in Nigeria,” said MTN Group CFO Ralph Mupita in an update to shareholders.

“The listing of MTN Nigeria deepens the equity capital markets base of the country, which makes it possible to broaden the shareholding base of MTN Nigeria over time.”

However, the disputed claim by the Attorney General of the federal government of Nigeria has created uncertainty over the valuation of MTN Nigeria.

The NSE requires MTN Nigeria to publish a commencement listing price.

“As a result, and in the best interests of all shareholders, both current and future, the commencement listing price was set at N90 per ordinary share, which was determined with reference to private share sale transactions by MTN Nigeria shareholders over the past 180 business days,” the company noted.

MTN Nigeria recently announced its earnings for the first quarter ended March 31, recording 13.4% growth in service revenue, driven by a 12.7% and 32.4% rise in voice and data revenue, respectively, and the addition of 2.1-million active mobile subscribers to the network.

During the period under review, earnings before interest, taxes, depreciation and amortisation were N150.4-billion, with margins of 53.3%.