The MTN Zakhele shares hovered around the R85 per share mark for most parts of their first trading day on an over the counter platform (OTC).
Reaching a high of R90 and a low R80 on the day, the share price levels did not spring any surprises as this was a generally expected trading range. The shares closed the day at R81.
MTN Zakhele is estimated to boast NAV per share of between R120 and R150. The share price reflects a discount which could be partly attributed to the limited liquidity of the MTN Zakhele trading.
According to the data feed on mtnz.co.za, taken after the market closed, the first trading day saw only 434 trades. There were 96676 shares traded adding to a total value of R8.4 million.
The first day’s trading sessions left MTN Zakhele with total market capitalisation of R6.4bn.
There were apparent teething problems on the MTN Zakhele trading platform as reflected in comments from readers in ujuh.co.za. A considerable number of readers expressed frustration about not being able to access the trading platform. Certainly, when we tried the online platform around lunch time it was down. When we tried an hour later it had come back up.
However complains from readers kept coming for the whole day suggesting the platform may have been overloaded.
MTN Zakhele trading was launched after the BBBEE scheme of telecoms giant MTN Group passed the three year lock in period. Trading of the shares within black people will continue for the next three years.
The scheme was established in November of 2010 with a six years lock in period. It attracted about 120000 investors who came in at R20 per MTN Zakhele shares. This means those who sold their shares at R81 yesterday realised a 300% return on their investment.
MTN Zakhele shares are partly tracking the underlying asset being the JSE listed MTN Group. Their market value is derived from MTN Group’s share price movement, MTN Zakhele NAV and most importantly liquidity of the MTN Zakhele share price.
Coincidentally MTN Group’s share price was excited yesterday and registered a gain of 2.48% or 480c on the day to close at R198.46 per share. It is important to note that MTN Group share price is influenced by radically different dynamics to those influencing MTN Zakhele shares.