MTN Set To List On The Ghanaian Stock Exchange This May Following Approval
South African mobile operator MTN is set to list on the Ghanaian stock exchange later this month, after receiving all of the necessary regulatory approvals.
Africa’s biggest mobile phone company by subscribers has planned the initial public offering for the month of May, following positive growth data for the telecoms giant in the country.
MTN has agreed to sell shares in Ghana as one of the conditions of a deal to gain spectrum rights. The company will make 35 percent of its shares available to investors on the Ghanaian Stock Exchange, according to ITWebAfrica.
“On 20 April 2018, we received all required regulatory approvals to proceed with the IPO in Ghana, which we expect to launch in late May 2018,” the MTN group revealed in a first quarter update.
The company originally aimed to list in Ghana during 2017, but the process was delayed. The decision to list on the Ghanaian exchange was reached as part of the terms of agreement for the acquisition of a 15-year $67m 4G license in 2015.
The timing of the listing has been designed to benefit from strong first quarter results in the West African country.
MTN Ghana announced strong revenue growth of 29.3 percent year on year in the first quarter of 2018, led by a 51.5 percent increase in data revenue, while MTN Mobile Money accounted for 15 percent of MTN Ghana’s total revenue, according to BusinessGhana.
Nigeria to follow after Ghanaian stock exchange
Later this year MTN also intends to list on the Nigerian stock exchange, making around 30 percent of its Nigerian shares available for the listing, with those shares worth around $512 million, according to ENCA.
The listing is taking place as part of the conditions places upon the telecoms giant in the West African country regarding their $1 billion fine for missing a deadline to disconnect unsubscribed Nigerian customers.
Most of the shares will be sold to Nigerian institutions and individuals. MTN is the biggest tax contributor, biggest employer and biggest company in Nigeria, and now Nigerians will be able to own a piece of the mobile operator through the shares.
The combination of Nigeria’s $512 million and Ghana’s aim to raise around $450 million means that MTN could raise in the region of $962 million between the two listings. MTN is also listed on the Johannesburg Stock Exchange in South Africa.