How to Buy MTN Shares | Step-by-Step Guide to Buy MTN Stock _ Are you interested in investing in stocks? Then, you are at the right place. Today we are going to be unveiling all you may need to know about MTN shares.
Are you READY for the exposition on this subject? I guess it’s a YES! Then let’s roll.
About MTN
MTN Group Limited, formerly M-Cell, is a South African multinational mobile telecommunications company, operating in many African and Asian countries.
Its head office is in Johannesburg. As of December 2020, MTN recorded 280 million subscribers, making it the 8th largest mobile network operator in the world, and the largest in Africa.
Active in over 20 countries, one-third of the company’s revenue comes from Nigeria, where it holds about 35% market share.
MTN Group is the primary sponsor of the South Africa national rugby union team and sponsors English football club Manchester United F.C. and the Zambian super league.
MTN Nigeria, Nigeria’s largest GSM company, will be offered on the Nigerian Stock Exchange on Thursday, May 16, 2019. We have waited for years as Nigerian Stock Exchange fans for this to materialize, and we are delighted to see this long-awaited news come to fruition.
- What exactly does this mean? MTN’s shares can now be traded on the Nigerian Stock Exchange on a daily basis by buyers and sellers. Until recently, this was not feasible because its investors owned their shares privately. Until last year’s Ghana IPO, you could only purchase and sell MTN shares in South Africa.
- Who has the ability to acquire and sell MTN shares? Retail and institutional investors with a CSCS account and an account with any licensed stockbroker are the only ones who may buy or sell MTN shares. You cannot purchase MTN shares unless you have a stock brokerage account with a Nigerian-registered stockbroker.
- Why should you buy MTN stock? MTN Nigeria is a giant firm with tremendous earnings of more than N160 billion. In its most recent investor conference, it said that it has a return on equity of about 90%. This implies it produces a profit of N90 for every N100 invested in the stock. That is unprecedented for any publicly traded corporation in the country.
MTN also promises to give out more than 80% of its income in dividends. It is also projected to debut at N90 (and rise as investors compete for the shares), giving it a price-earnings ratio of 11x. Its double-digit sales and profit growth indicate that this is a good deal.
- What is a fantastic price? According to the data we have, MTN may be listed for N90, giving it a price-earnings ratio of 11x (we assumed earnings per share of N8 based on profits of N160b). Given that MTN’s price-earnings ratio has the potential to reach 30x, the share price might easily reach N240 by the end of the year. MTN South Africa is trading at 29 times profits per share, thus this idea is unlikely. MTN might thus be a solid stock to purchase at any price between N90 and N160, providing investors with a substantial upside.
How to Buy MTN Shares | Step-by-Step Guide to Buy MTN Stock
As previously indicated, in order to purchase MTN shares, you must have a stock brokerage account. The shares will be listed on Thursday, which means that investors (both retail and institutional) will be able to purchase them.
To purchase, however, there must be a willing seller. When you have a willing seller who is willing to accept your offer price, you know you’ve got a deal.
Quick steps to get started;
- Make a deposit into your stock brokerage account.
- Instruct your stockbroker to purchase for you at the price you specify.
- You may also purchase yourself if you have a stock brokerage account and an online trading account.
- If you go through the web portal, you put your bid and hope that an offer at the proper price is available for you, and you have a deal.
- Your brokerage sends you an email stating that you now hold shares in MTN.
The bottom line is that we believe MTN shares will be extremely scarce for the time being since the investors who possess them are private. They will only sell if they are desperate for money and the price is reasonable.
MTN announced intentions to do an IPO (Initial Public Offering) “soon,” which will result in the creation of new shares. This might be the time when a large number of Nigerians get the opportunity to purchase. Don’t expect it to be N90 by then.
