The Nigerian Exchange Limited (NGX) has admitted additional 641 million ordinary shares of MTN Nigerian Plc into its platform arising from the company’s scrip dividend scheme.
NGX in the report said
Trading License Holders are hereby notified that additional 641,047,053 ordinary shares of 2 kobo each of MTN Nigeria Communication Plc were on Wednesday, 16 August 2023, listed on the Daily Official List of the Nigerian Exchange Limited (NGX).
- “The additional shares listed on NGX arose from MTN’s Scrip Dividend Election Scheme. With this listing of the additional 641,047,053 ordinary shares, the total issued and fully paid-up shares of MTN has now increased from 20,354,513,050 to 20,995,560,103 ordinary shares of 2 kobo each”.
Reported recently by MTN Nigeria announced that it has obtained the approval of the Securities and Exchange Commission for the registration of the ordinary shares to allow the company to issue dividends as shares to 5,192 shareholders.
The company disclosed this via an official statement signed by Company Secretary, Uto Ukpanah which was sent to Nigeria Exchange Limited.
The statement reads
MTN Nigeria Communications Plc (MTN Nigeria) is pleased to announce that it has obtained the approval of the Securities and Exchange Commission for the registration of the ordinary shares issued under the recently established scrip dividend election plan (the “Plan”).
Under the Plan, 5,192 shareholders elected to receive their FY 2022 final dividends in the form of shares, equivalent to 641,047,053 new ordinary shares of 2kobo each at N232.68 per share. This brings the total issued shares of the Company to 20,995,560,103.
In line with the regulatory guidelines, the Central Securities Clearing System (CSCS) accounts of qualified shareholders will be credited in the coming days.
What a ‘Scrip Dividend Plan’ means
A scrip dividend is a method through which a company allows its shareholders to receive dividends in the form of additional shares, rather than cash payments.
The “election” aspect means that shareholders could choose whether they wanted to receive their dividends in the form of cash or additional shares.
What you should know
MTN reported a 29.14% decline in its profit for the half year 2023 to N128 billion, compared to N181 billion during the same period in 2022. Conversely, the telco’s revenue grew by 21.96% to N1.15 trillion in H1 2023, compared to N950 billion in the same period in 2022.
Commenting on the financial performance, MTN Nigeria’s CEO, Karl Toriola, stated that operating conditions in the first half of 2023 remained challenging with energy, food, and general inflation at elevated levels.
- “Following the inauguration of President Bola Ahmed Tinubu in May 2023, swift reforms were implemented to remove the fuel subsidy and liberalize foreign exchange management, to bolster investor confidence and drive growth and investment in Nigeria.
- These policy reforms are expected to be positive for the economy in the medium to long term. However, in the short term, they have created additional financial burdens on consumers and businesses, and these will be fully reflected in the pressures on our margins in H2,” Toriola said.
