By Aaron Ukodie
The Economic Financial Crimes Commission ( EFCC) today visited the Nigerian telecommunication leader, MTN, on account of its recent listing at the Nigerian Stock Exchange.
Reports indicate that the EFCC went to MTN to clarify the listing procedure and its outcome in a bid to determine if there was any financial crime committed.
The EFCC officials were sited at the MTN head office in Falomo, at about 4 pm where it met with top officials of the company and demanded some documents relating to its listing at the NSE.
EFCC spokesperson Tony Orilade told eWorldNews that he could not confirm what the visit was about, if there was one, but promised to give details on the matter on Monday, after seeking clarifications from appropriate officials.
MTN has not responded to the visit but the Chairman of the Association of Licensed Telecom Operators of Nigeria (ALTON) Gbenga Daniel confirmed to eWorldNews that EFCC had a routine visit at the office of MTN today to seek clarifications on the company’s listing at the NSE.
According to him today’s meeting was a follow up to one held earlier in the week and the meetings were held under friendly atmosphere, where MTN officials gave clarifications and provided documents on the matters sought by the Crime Commission, and all officials have since gone to their various homes after the meeting.
Three days ago the Nigerian Stock Exchange ( NSE ) had said that MTN Nigeria met all listing requirements and there is nothing technically inappropriate about its pricing trend.
The NSE noted that MTN Nigeria listed by Introduction, adding that where a company lists following an Initial Public Offering, shares are expected to be available for trading on the day of listing. In a Listing by Introduction, however, no shares have been offered for subscription by the company prior to listing.
The explanation was that, without any intervention, it is possible that there will be no shares available for trading on the listing date. Indeed, currently, no rule of the Exchange compels shareholders in a listed company to tender their shares for trading. Shareholders are at liberty to trade their shares at any time and price suitable to them.
And in order to stimulate trading in the shares of companies that List by Introduction, the NSE’s practice is to urge the company to make shares available on the day of listing. In the case of MTN Nigeria, the NSE had requested the Company as part of the listing process to make shares available and The Exchange expects the company to do that.
In spite of its first day bullish outing the shares of MTN Nigeria recorded its first price loss on the Nigerian Stock Exchange (NSE) on Friday after its listing on May 16.
NAN reports that the stock dipped N9 to close at N140 per share following profit taking.
The telecommunications company had listed 20.35 billion shares at N90 per share which recorded steady growth to hit N149 per share.
The market capitalisation shed N263 billion or 1.90 per cent to close at N13.601 trillion compared with N13.864 trillion recorded on Thursday.
