MTN Group Ltd.’s Nigerian unit soared another 10% on its second day of trading in Lagos as investors rushed to grab a slice of the country’s only listed mobile-phone company.
The shares traded at 108.90 naira as of 10:37 a.m. local time. Daily equity moves are restricted at 10% either way under Nigerian Stock Exchange rules. At least 325,000 shares changed hands.
MTN has arranged to list the stock in two stages. The first, which took place Thursday, allows Nigerian investors who previously bought and sold their shares over the counter to trade them publicly.
Africa’s biggest wireless carrier will then sell part of its stake of about 79% once a dispute with Nigeria’s attorney general over $2 billion in back taxes is resolved.
MTN Group Ltd. has been promising to list its Nigerian business on the Lagos stock exchange for almost three years, yet it took just 16 minutes for the mobile-phone giant to cause a sensation.
After a lengthy ceremony of speeches, congratulations and rounds of applause delayed the start of trading for more than half an hour, it looked as though MTN Nigeria Communications Plc may not trade at all with the market due to close for the day at 2:30 p.m. The listing finally took place at 2:14 p.m. local time, leaving only a brief window before traders knocked off for the day.
The reaction was instant. The stock jumped 10% to 99 naira from the listing price announced the previous day — the maximum possible move under Nigeria Stock Exchange rules. That values the wireless carrier at 2 trillion naira ($5.6 billion), making MTN Nigeria the second-biggest company on the NSE. The All-Share index acted accordingly, turning a loss for the day into a slight gain.
The reverse was significant because Nigerian stocks have had a torrid time of late — they’re down 9.5% this year. That’s the fourth-worst performance globally, according to data compiled by Bloomberg. They were on track for their ninth straight day of losses until MTN Nigeria’s shares were listed, yet ended the day up 0.5%, the best showing in almost a month.