₦airaland Forum

JUO: hum wai N500 share share now? I even watch hd channel s with 5H

guy why you dey blow lie like dis sef,na my email be dis Holla me itoghorezekiel@gmail.com

[/quote]Boss13: From the comments I read here I think we are being harsh on Multichoice. We want foreign investors to come into the country yet we get angry when we assume they are making so much money.

Multichoice came into this country in 1990 or 1991 by first launching a cable terrestrial network before going digital with satellite (DSTV). Please note that no business is established to make losses (except some Indian companies which I find ridiculous).

My surprise is that Multichoice has continue to remain a private company in Nigeria but has gone public in South Africa. Same thing with MTN and as a result of this, the general public cannot estimate accurately the revenue generated by these companies.

For a company that has been in this country for over 20 years, I think it is unacceptable for them not to be listed on the Nigerian Stock Exchange.

Now to answer the question, Multichoice is making money and if they are not, they would have closed shop since. Even with all the political instability from 1990 till date, they continue to operate.

Hello Boss13,

This problem of going public is not restricted to Multichoice alone..In fact, the management of the NSE has been doing all things possible to ensure that these companies, including the telecoms firms, list on the exchange so that Nigerians can also have a share of their profits (and losses . The truth of the matter is that, over the years, these companies, especially firms like MTN, have so much made money off Nigerians that it is quite selfish for them to not have listed. And they keep repatriating funds to their countries of origin.

I will not be too harsh on Multichoice for not listing, I will be harsher on MTN. Over the last 5 years, a huge chunk of MTN's revenue has almost always come from Nigeria. In 2012 alone, about 29% of MTN's total revenue came from Nigeria, whlist MTN made a total net profit margin of 18% in the same year. This means that out of N100, for example, MTN made a profit of N18 after covering all its costs and expenses. Not even Mobil Oil can boast of such strong margin levels..Yet, MTN remains unlisted in the land where a large chunk of its milk and honey flows from..

Pitiable!


[quote]

Companies do not go to the stock exchange primarily for political reasons but for finance and market/branding reasons.The stock exchange is not, has never been, and will never be a part of a company's CSR (corporate social responsibility) initiative. It is purely a corporate finance decision with a little bit of PR/branding considerations. Personally i feel if MTN goes public in Nigeria, its market value will drop. In stock market economics, there is what we call market efficiency...this is a highly theoretical concept, but has some practical implications. One small side of the theory is the level of information and knowledge of the market participants. If majority of people in a market simply buy shares because they feel that it will grow, friends are buying it etc., that market tends to prove itself as inefficient to achieve the goals of the companies that lists on it (which is for the stock market to give it a correct value(stock price) of its net worth). Take your minds back to the stock market bubble in 2007 or so, you'll notice that people were purchasing shares whose Price/Earning ratio was 500. Price/Earning ratio is a simple equation that tells you how many years your investment in the shares might take to be fully realised. So you see, people were purchasing shares that would give them returns in 500 years!!!!, which shows that the purchasers of these shares are not entirely rational. These are some of the things the Senior Financial Advisors/Analysts of the likes of MTN and DSTV will consider before taking a decision to list on the stock exchange.

Even if they want to go public, they could sell their shares through private placements to indigenous companies like BGL, Vetiva, Chapel Hill, or even a consortium of indigenious banks (like they are currently doing though still as a private limited company) and trust me their shares will be valued more and priced rightly. The last I checked(2009 to be precise), MTN nigeria shares (on private placement) was $ 23 per share, that is an estimated N 3450 (@ N150/$). Do you think the Nigerian stock market participants would be able to keep it at that price and it would steadily rise?

Apart from the above though, as one poster put it, "Nigeria is an abnormal society" and pure market study alone may not be sufficient enough in making strategic decisions.

max hatman: Boss13: From the comments I read here I think we are being harsh on Multichoice. We want foreign investors to come into the country yet we get angry when we assume they are making so much money.

Multichoice came into this country in 1990 or 1991 by first launching a cable terrestrial network before going digital with satellite (DSTV). Please note that no business is established to make losses (except some Indian companies which I find ridiculous).

My surprise is that Multichoice has continue to remain a private company in Nigeria but has gone public in South Africa. Same thing with MTN and as a result of this, the general public cannot estimate accurately the revenue generated by these companies.

For a company that has been in this country for over 20 years, I think it is unacceptable for them not to be listed on the Nigerian Stock Exchange.

Now to answer the question, Multichoice is making money and if they are not, they would have closed shop since. Even with all the political instability from 1990 till date, they continue to operate.

Hello Boss13,

This problem of going public is not restricted to Multichoice alone..In fact, the management of the NSE has been doing all things possible to ensure that these companies, including the telecoms firms, list on the exchange so that Nigerians can also have a share of their profits (and losses . The truth of the matter is that, over the years, these companies, especially firms like MTN, have so much made money off Nigerians that it is quite selfish for them to not have listed. And they keep repatriating funds to their countries of origin.

I will not be too harsh on Multichoice for not listing, I will be harsher on MTN. Over the last 5 years, a huge chunk of MTN's revenue has almost always come from Nigeria. In 2012 alone, about 29% of MTN's total revenue came from Nigeria, whlist MTN made a total net profit margin of 18% in the same year. This means that out of N100, for example, MTN made a profit of N18 after covering all its costs and expenses. Not even Mobil Oil can boast of such strong margin levels..Yet, MTN remains unlisted in the land where a large chunk of its milk and honey flows from..

Pitiable!




Companies do not go to the stock exchange primarily for political reasons but for finance and market/branding reasons.The stock exchange is not, has never been, and will never be a part of a company's CSR (corporate social responsibility) initiative. It is purely a corporate finance decision with a little bit of PR/branding considerations. Personally i feel if MTN goes public in Nigeria, its market value will drop. In stock market economics, there is what we call market efficiency...this is a highly theoretical concept, but has some practical implications. One small side of the theory is the level of information and knowledge of the market participants. If majority of people in a market simply buy shares because they feel that it will grow, friends are buying it etc., that market tends to prove itself as inefficient to achieve the goals of the companies that lists on it (which is for the stock market to give it a correct value(stock price) of its net worth). Take your minds back to the stock market bubble in 2007 or so, you'll notice that people were purchasing shares whose Price/Earning ratio was 500. Price/Earning ratio is a simple equation that tells you how many years your investment in the shares might take to be fully realised. So you see, people were purchasing shares that would give them returns in 500 years!!!!, which shows that the purchasers of these shares are not entirely rational. These are some of the things the Senior Financial Advisors/Analysts of the likes of MTN and DSTV will consider before taking a decision to list on the stock exchange.

Even if they want to go public, they could sell their shares through private placements to indigenous companies like BGL, Vetiva, Chapel Hill, or even a consortium of indigenious banks (like they are currently doing though still as a private limited company) and trust me their shares will be valued more and priced rightly. The last I checked(2009 to be precise), MTN nigeria shares (on private placement) was $ 23 per share, that is an estimated N 3450 (@ N150/$). Do you think the Nigerian stock market participants would be able to keep it at that price and it would steadily rise?

Apart from the above though, as one poster put it, "Nigeria is an abnormal society" and pure market study alone may not be sufficient enough in making strategic decisions.

DStv is not even listed on JSE, its Parent company, Nasper is listed on JSE. DStv makes only 15% of Nasper profits, the rest come from Newspapers, Magizenes, internet businesses. Its a massive company which is worth $20BN.

[quote author=1,2]DStv is not even listed on JSE, its Parent company, Nasper is listed on JSE. DStv makes only 15% of Nasper profits, the rest come from Newspapers, Magizenes, internet businesses. Its a massive company which is worth $20BN.[/quote]my man I think MTN is listed on JSE, ( JSE:MTN). mobile telecom companies are cash rich companies, they do not have to list in a way. they can finance their operations from their pockets.

everyday:
With the epileptic power supply we have in this country,they will have to spend a lot in power generation since their services is operational in the 36 states of the federation

They need to power their single operation and they do distribution via satellites outer space. The customer has to (power) their device.

spelsrus:
They need to power their single operation and they do distribution via satellites outer space. The customer has to (power) their device.

Very true!