MTN’s Ghana business, which is seeking to raise GHC 3.478 billion ($743 million) in a 35 percent initial public offering (IPO) was launched on Tuesday, 29th May, 2018 by the Nation’s finance minister, Mr. Ken Ofori-Atta.
In what is expected to be the West African country’s largest IPO, telecoms operator MTN will sell about 4.63 billion shares in MTN Ghana at 75 pesewas per share, sources said.
The public offering, which closes at the end of July, is one of the requirements MTN agreed to with Ghanaian regulators in 2015 to allow for the introduction of its fourth generation, high-speed mobile data network.
On 20th April ,2018, MTN Ghana received all required regulatory approvals from the National Communications Authority and the Ghana Stock Exchange to proceed with the IPO¸ after successfully bidding for the 4G LTE licence for 800MHz spectrum in November 2015 -effective 21st June, 2016, said licence is valid for a renewable period of 15 years. If successful, MTN Ghana will be the most valuable company listed on the Ghana Stock Exchange, analysts said.
Speaking at the launch, Mr. Ebenezer Asante, the CEO of MTN Ghana and Vice President (VP) of MTN Southern and East Africa and Ghana (SEAGHA) said, “Today our localisation has gone beyond just getting a few investors to have a share of the company. The exciting thing about this offer is that we are seeking to get as many Ghanaians as possible to invest in MTN Ghana.”
Even further he shared, “We move into another phase of our business, which seeks to give Ghanaians that unique opportunity to own a share of MTN…The entire offer is for two months…I am excited to say that we are allowing shares to be bought through MTN mobile money.”
Chief Finance Officer, MTN Group Ghana, Modupe Kadri, added, “We saw this principally as a localisation. Wanting locals to have an increasing ownership of the MTN Ghana business.”
For the first time, mobile money subscribers can purchase the shares on the stock market using their phone, besides selected banks.
MTN is currently the leading mobile operator in the country with 17.8 million voice subscribers as of September, ahead of AirtelTigo, Vodafone and Nigeria’s Globacom.
Last December MTN signed a GHC 510 million ($112 million) syndicated loan from nine banks and was oversubscribed by GHC 590 million ($1 = 4.67 cedis).
We will keep you updated as more information reaches us.