The share price of MTN on Nigeria’s bourse soared by 21 per cent in two days, closing at N108.90 on Friday.
The telecommunications giant, which is the only one listed in the sector by the Nigerian Stock Exchange gained the maximum 10 per cent each on the two days of trading. It was initially listed at N90 on Thursday.
Traders said the stock was in hot demand, with 48,358, 699 units, valued at N5,528,049,931 exchanging hands on Friday. On Thursday 5.5million shares of the company were sold for N545.6 million.
The listing of MTN Nigeria Communications Plc 20.35 billion shares lifted the market capitalisation by N1.83 trillion on Thursday.
The stocks have now passed the N2 trillion mark. The interest in the stock was not dampened, even with the news that the company had signed a N200 billion loan agreement with a consortium of banks, for a seven year tenor.
Citibank will act as coordinator of the loan and Quantum Zenith will act as Facility Agent in the loan provided by seven Nigerian banks.
Ferdi Moolman, MTN CEO in Nigeria said the Medium Term Facility would enable MTN to fund its evolving business opportunities while assisting with capital expenditure and working capital to deliver enhanced customer service.
It followed the successful establishment of a similar 7-year N200 billion facility by MTN in 2018 and formed part of the company’s wider programme to raise domestic debt, he said.
Other stocks that gained on Friday were Cutix, Oando, Transcorp and Access Bank. None had the leap of MTN.