MTN Nigeria is poised to make history on the Nigerian Stock Exchange with what is anticipated to be the largest Initial Public Offering (IPO) in the market's history. The telecom giant is scheduled to debut on the bourse by Thursday, May 16, 2019, having registered over 20 billion ordinary shares with the Securities and Exchange Commission (SEC).

Reports suggest MTN Nigeria's shares could trade for a minimum of N90 per share, which would give the company an impressive pre-IPO valuation of N1.831 trillion. This valuation would instantly position MTN Nigeria as the second most valuable company on the Nigerian Stock Exchange, trailing only Dangote Cement, which holds a N3 trillion valuation. Upon its IPO, MTN Nigeria will join an exclusive club of companies, alongside Dangote Cement and Nestle Nigeria, with valuations exceeding N1 trillion.

Significantly, MTN Nigeria will be classified as a technology stock upon its listing. This classification will cast a spotlight on the existing technology sector on the Nigerian Stock Exchange, where MTN's shares are expected to dwarf those of other tech companies. While the IPO could draw attention to these smaller, often penny stock technology companies, it remains uncertain if it will translate into increased investments for them.

Currently, seven technology companies are listed on the Nigerian Stock Exchange: CWG PLC (CWG), Omatek (OMATEK), Courtville (COURTVILLE), Tripple Gee and Company (TRIPPLEG), Chams PLC (CHAMS), E-Tranzact (ETRANZACT), and NCR PLC (NCR). A closer look reveals that at least four of these companies — Chams (N0.33), Courtville (N0.26), Omatek (N0.5), and Tripple Gee (N0.7) — are trading as penny stocks, below N1 per share. Furthermore, reports indicate that four of these seven listed tech companies have seen their share prices fall below their initial IPO levels. Collectively, these seven companies command a market value of approximately N21 billion, a stark contrast to the N1.8 trillion valuation projected for MTN Nigeria's IPO.

Despite some of these companies, like CWG, generating relatively high revenues, they often struggle to receive positive reviews from stock analysts. While the MTN IPO might bring increased visibility to ICT stocks, there is no guarantee of price appreciation for existing players. To attract more investors and enhance their stock market performance, these companies will need to significantly improve their operations, increase transparency about their business activities, and innovate by developing more disruptive technologies.