Future view Group has urged its clients to take advantage of the planned offer for a subscription of 575 million shares of MTN Nigeria Communications Plc (MTNN) through book building to beef up their portfolios.
The Group Managing Director, Futureview, Mrs Elizabeth Ebi, gave the charge in a statement signed by Head, Corporate Finance, Futureview Financial Services, Mr Solomon Amicki, on Tuesday in Lagos.
Book building is a process by which an underwriter determines the issue price of a security through an aggregate demand of investors.
She said that the investment company, Futureview Securities Ltd., was one of the accredited stockbrokers to the offer, urging clients to watch out for the offer this month.
She said that MTN’s value would double after the offer as the parent company controlled over 85 per cent of the mobile money market in Ghana.
“The Central Bank of Nigeria recently granted an approval in principle to MTNN and Airtel to operate Pay Service Banks (PSB) with final approval to follow in six months subject to specific requirements.
“The value of MTNN is tipped to double as it 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 revenue 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.
“Futureview Analysts are of the opinion that the huge subscriber base in Nigeria would shift the projected revenue up to N300 billion within 12 months.
“We also believe 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 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 dollars and has concluded over 100 million transactions.
“MTN has over 65 million subscribers as of 2019 and we believe that a good chunk of these 65 million subscribers would execute more than 300 million online transactions with MTN Payment service platforms at their fingertips,” she said.