Airtel Africa displaced its rival, MTN Nigeria, as the second most capitalised company and the largest telecommunications firm in the Nigerian capital market.
Recall investors at Airtel Africa made over N358.90 billion last week after the firm’s share value hit an All-Time High, while MTN Nigeria shareholders were left without a gain this year.
Airtel Africa’s gain was triggered by a 9.09 percent appreciation in the equity value of the Bharti Airtel subsidiary at the end of trading. The stock previously cost N955 per share on Tuesday, but settled at N1050.5 on Wednesday.
This pulled up Airtel Africa’s market capitalisation to N3.94 trillion, moving shareholders total investment up from Tuesday’s N3.58 trillion – adding N358.90 billion to investors’ coffers, Ripples Nigeria analysis showed.
It was gathered that the surge in Airtel Africa’s market capitalisation occurred after the telco successfully sold its tower assets in Tanzania, making a fortune of $159 million for the corporation – which increased liquidity to run other operations.
MTN Nigeria had opened the year ahead of Airtel, taking position behind Dangote Cement, which was the most valuable company on the Nigerian Exchange Group (NGX) with N4.43 trillion.
However, following trading in the bourse, the capital market priced MTN Nigeria’s stock low at N185.5kobo per share, below the N197 the Y’ello network opened the exchange with.
This plummeted shareholders total investment in MTN Nigeria by 5.83 percent, knocking the market capitalisation of the firm to N3.77 trillion, against last week Friday’s N4 trillion.
MTN Nigeria shareholders lost N234.07 billion during the eight hours of trading, creating an opening for Airtel to leapfrog the Karl Toriola-led company despite trading flat.
Airtel’s share didn’t appreciate nor depreciate, ending the bourse at N1050.5kobo, the same value shareholders of the Bharti Airtel subsidiary sold the company’s stock last week Friday.
When the current stock value is pegged to the outstanding shares, Airtel Africa boast of N3.94 trillion, thanks to the 10 percent share appreciation of last week Wednesday.
