MTN Nigeria Stock Up 20% in January on Capital-Raising Plan
TLDR
- MTN Nigeria’s share price has gained by over 20% month-to-date in early January 2025, trading at N242 as of January 10
- The recovery follows the company’s issuance of commercial papers under its N250 billion Commercial Paper Issuance Programme
- From November to December 2024, MTN issued multiple series of commercial papers, including Series 11–16, all of which were oversubscribed
MTN Nigeria’s share price has gained over 20% month-to-date in early January 2025, trading at N242 as of January 10. This marks a sharp rebound from a low of N170 in November 2024, reflecting improving investor confidence amid the company’s capital-raising efforts and macroeconomic adjustments.
The recovery follows the company’s issuance of commercial papers under its N250 billion Commercial Paper Issuance Programme, aimed at bolstering short-term working capital and navigating foreign exchange challenges. From November to December 2024, MTN issued multiple series of commercial papers, including Series 11–16, all of which were oversubscribed.
For example, Series 13 and 14 issued in late November raised N72.18 billion, exceeding the initial N50 billion target, with yields of 27.50% (181-day tenor) and 29.00% (265-day tenor). This strategic fundraising strengthened MTN Nigeria’s financial position and contributed to its stock price recovery.
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Key Takeaways
MTN Nigeria’s share price rebound demonstrates the positive impact of proactive financial management. The oversubscription of its commercial paper issuances underscores strong investor appetite despite macroeconomic challenges. The company’s ability to leverage its N250 billion Commercial Paper Issuance Programme highlights its financial agility, with funds raised providing a buffer against forex losses, which spiked 90.8% year-over-year to N904 billion in 2024. As the stock eyes its January 2024 high of N281, MTN’s disciplined capital-raising and market recovery strategy could continue driving investor confidence in 2025.
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