MTN Nigeria confirms EFCC investigation of over listing on NSE


MTN Nigeria Communications Plc has said that the company was being investigated by Economic and Financial Commission ( EFCC).A statement inssued by MTN Nigeria and sign by the company secretary, Uto Ukpanah,  said MTN Nigeria had on May 23 2019 received EFCC letter requesting information and documentation related to to the listing of shares on the Nigerian Stock Exchange, but has not being accused of any wrong doing by the commission.He reiterated that the company received all regulatory apptovals required to list its shares on the NSE, as publicly confirmed by the Exchange and Securities and Exchange Commission.

The secretary said MTN as a law abiding and responsible corporate citizens is cooperating fully with the authorities, adding that it is commited to good governance to abiding by the extant laws of the Federal republic of Nigeria.The listing of MTN Nigeria  20.354 billion shares worth N1.831 trillion on the floor of the Exchange on May 16, 2019 has helped to bring growth in the market.

The market capitalistion of listed equities increased by 27.99 per cent or N2.975 trillion to N13.601 trillion nine days after the listing. The NSE All Share Index also rose by 2595.21 basis point to 30881.29 points from 28286.08 it closed on May 15, 2019 before the MTN shares was listed. Although the shares of MTN Nigeria helped to increase activities in the market it has with controversial issues.  investors after listing alleged that the company shares were manipulated, wondering  how 20 billion shares of a foreign-controlled company were listed in our national bourse and almost all the citizens of the nation who desire to buy the shares of the company can not find just one unit out of the 20 billion to buy.


They also said that the artificial scarcity of the stock will make sense if it was caused only by the forces of demand and supply but looking at the structure of ownership of the company shares, it signalled that there is problem some where.
Some investors raised alerm, calling on the EFCC to investigate MTN Nigeria all its process of listing by introduction 20.354 billion shares that is literelly not seen by investors.Investors also alleged that the scarcity of the shares in the market was designed to enable the holders push the price of the stock to a certain level before off loading it and dumping for other investors.

The capital market regulator, Securities and Exchange Commission had also said that the commission had approved MTN’s listing and had no issues with it.The management of the Exchange has cleared the air saying because MTN Nigeria listed by introduction, it’s shares were expected to be available for trading on the day of listing, adding that no MTN shares has been offered for subscription by the company prior to listing

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