MTN Nigeria Plc is sure giving Dangote Cement a run for its money as they battle for number one spot on the Nigeria Stock Exchange (NSE)
Prior to the listing of MTN Nigeria Plc on the Nigerian Stock Exchange (NSE); Dangote Cement had remained unchallenged as the biggest company on the NSE in terms of market capitalization. In May 2019, when MTN Nigeria Plc finally listed on the NSE with a market capitalisation of ₦1.3 trillion. It ranked as the second largest company on the NSE; but was ₦782 billion less of Dangote Cement market capitalisation.
Battle of Supremacy on the NSE
But on Tuesday August 20th 2019, MTN Nigeria overtook Dangote Cement to become the number one company on the NSE. MTN Nigeria, following trading on the previous day (Monday 19th 2019), closed at ₦138.70 per share which brought its market capitalisation to ₦2.82 trillion while Dangote cement followed behind at ₦164.50 per share and a market capitalisation of ₦2.81 trillion.
However, MTN Nigeria’s status as biggest company on the NSE was short-lived as Dangote Cement regained its position the next day (August 21st 2019) as it closed with a share price of ₦166 and market capitalisation of ₦2.83 trillion; while MTN Nigeria closed with a market capitalisation of ₦2.69 trillion.
MTN Nigeria among the Elites
Just only three months of been listed on the Nigerian Stock Exchange (NSE), MTN Nigeria is already giving Dangote Cement a good run for its money. The Telecoms company (MTN Nigeria Plc) who opened the route for other telecommunications company like Airtel Africa; to come on board the NSE is gradually boosting trust in the ICT sector as it now also a member of the NSE Premium Board.
The NSE Premium Board is a listing segment of the NSE; that consists of elite issuers who meet the Exchange’s most stringent corporate governance and listing standards. One of which is that; a company must have a free float of 20 percent of its issued share capital; or the value of its free float is equal to or above ₦40 billion; on the date the Exchange receives the Issuer’s application to list. MTN Nigeria’s free float according to NSE was higher than ₦90 billion.
Other members of the NSE Premium Board include; Dangote Cement Plc, FBN Holdings Plc, Zenith International Bank Plc, Access Bank Plc, Lafarge Africa Plc, Seplat Petroleum Development Company Plc and United Bank for Africa Plc.
ICT to take over
Airtel Africa is also playing is part in boosting the nation’s ICT sector; as it came in as the third largest company on the NSE with a market capitalisation of ₦1.26 trillion. It is also currently the most expensive share among the listed ICT companies, with a share price of ₦323 per share. This report is as at 21st August 2019.
With the massive successes of these ICT companies are we entering an era where the nation’s bourse will be dominated by them?
Drop your opinion in the comment section.