Should I buy MTN shares has been the questions many are asking after that MTN Nigeria launched its Initial Public Offer (IPO) on December 01, 2021.
A lot of Nigerians appear to be sitting on the fence asking whether it’s safe to purchase MTN shares or not. Keep reading because we have the answers to your questions in this article.
At the Nairametrics Clubhouse show, On The Money series, investment and financial analysts explained that fundamentally, MTN is a strong company and a discerning investment decision for buyers. They also attested that the company(MTN) has over the years grown into an astronomical body since it inception in 2001 and is still maintaining its alpha position in the telecommunication sector.
Here what experts are saying about MTN share
Wale Okunrinboye, an investment banker, noted that MTN as a company has strong figures and could make a good buy for retail investors.He said, “Fundamentally, I think MTN is a solid company. It has grown astronomically since it started in 2001 and is dominating the telecom space. Its demand is inelastic as people always need to communicate and so the product will always be in demand.
Also, you don’t have many players going into that space because the entry barriers are quite large.“Also, in terms of growth prospect, asides from the increasing Nigerian population, there is also the increasing data consumption. Going forward, data consumption will increase even more as we go more digital. The revenue from data consumption continues to increase every quarter.”
Ugochukwu Obi-Chukwu, Founder, Nairametrics, also pointed out that the steady returns on equity in form of dividends make the stock a good buy, and one that could pay off in the long term.According to Jim, “Another reason why MTN shares make a good buy right now is the upcoming venture into the financial space.
Immediately the company announced that it had gotten an approval in principle from the Central Bank of Nigeria to operate a payment service bank, its share price shot up to 200 per unit.“ It is obvious that when MTN finally obtains the PSP license, the company would have opened another revenue stream and this could do more wonders for their already brilliant financials.” “There is a lot about mobile money to be explored and we can see that from what the telecoms are doing in East Africa.
In Nigeria for instance, there is quite a portion of people that are financially excluded people who are not keen on using the banks because of so many terms and conditions, and so on. The banks cannot reach those people and this will form another layer of revenue for MTN, he added.He went further to reveal that Nigeria is still far from attaining the financial inclusion goal as many persons still do not have access to banking services, and the mobile money will reach more people than the conventional banks have been able to reach.
How to easily buy MTN shares for as cheap as N3,380
Statistics has revealed that many Nigerians are showing high level of interest in buying a piece of MTN, but are not interested in the rigour and the hurdles of natively buying the shares of a company listed on the Nigerian exchange. To make it easy and explanatory, We have broken it down into 10 easy steps as explained below.
- Start with the app: You can start by downloading and installing the App. You can do this with your smartphone.
- Download the App: Download the Primary Offer app from the Google Play store or the Apple iOS store to your mobile device. The app was created by Chapel Hill Denham, watch out for that. With a good mobile network, the download and installation should take less than three minutes.
- Set up your account: Create an account using your bank verification number(Bvn) and date of birth. Here, you’d also need to set up your password, which should be kept as privately as possible. Once this is done, the app, would already have some of your details, showing that it is somewhat connected to the banking system.
- Verify your account: After setting up your account, you will be asked to enter your security code. That code is in an email you already received. It is a one-time password (OTP), which you will type into the app to validate your account.
- Login to your account: Once your account is all set up, you’d get a congratulatory message on your screen. The message would also have a blue button, asking you to login to the app.
- Enter your email and recently created password to get into the dashboard. Once you’re in, click on MTN Nigeria offer.
- Terms and Purchase: Once you click on MTN Nigeria offer, you’d see the terms and condition page, read and accept by ticking the unchecked column near the purchase button. Once you do that, click on purchase.
- Choose a number of shares: Your latest screen should now be showing “Enter your transaction details”. In the column for specified units, enter the number of units you want to buy. The minimum number of shares you can buy is 20. According to MTN, “the minimum application is 20 shares and multiples of 20 shares thereafter, so 20, 40, 60, 80, 100, 120…etc. There is no maximum, however, the amount of shares allotted will be within the offer size of up to 575,000,000 ordinary shares.” One share cost N169. So for the minimum number of shares, you would need N3,380.
- Pay: After choosing the number of shares, and checking the terms and condition box, you click on “pay now”. The app asks if you have a CSCS account. A Central Securities Clearing System (CSCS) account is a financial infrastructure for clearing, storing, and settlement of securities transactions. It is where all your shares are domiciled.
- If you have a CSCS account, click on yes, if not, click on no. The option you choose will determine the next line of action. For both answers, the process is simple. The app helps set up your CSCS account and allows you to process payment for the shares. If you already have a CSCS account, enter the account number and your clearinghouse number (CHN). After this, you update your bank details, where your dividends will likely be paid then you click on “pay now”.
- Pay with card or USSD or transfer: When you get to this page, you have many payment options, choose which one works for you — bank transfer or card payment or just USSD — and pay for the shares. Please note that bank charges will be added, bringing your N3,380 to N3,418.
- Share allotment: Once payment is made, you would get a mail, stating the details of your payment and confirming receipt of the payments. Following approval by SEC, your shares would be allotted in less than 15 days. Going with these steps, you easily become an MTN shareholder.