MTN Ghana Launches IPO Tuesday

Ebenezer Asante, CEO, MTN Ghana

MTN GHANA is finally set to launch its Initial Public Offering (IPO) come Tuesday, May 29, 2018.

According to the leading telecommunications company, the listing forms part of conditions for securing the 4G LTE licence.

On 20th April, 2018, it received all required regulatory approvals to proceed with the IPO.

CEO of MTN Ghana, Ebenezer Asante, said: “We have worked diligently to complete all regulatory requirements to enable us successfully execute the IPO.”

The company is expected to dispose of 35 per cent of its shares to Ghanaians by June 2018.

According to the company, it was collaborating with the Securities and Exchange Commission (SEC), Ghana Stock Exchange (GSE) and the Ghana Investment Promotion Council (GIPC) to make the launch of the 35 per cent IPO a reality.

MTN has not disclosed how much it expects to mobilise from the IPO even though there are speculations that it is looking at GH¢ 3 billion.

The company could list on the Accra Bourse by June ending if the IPO gets successful.

In 2015, MTN Ghana won a bid for a 4G licence in the 800 MHz spectrum.

Under the terms of the licence, the National Communications Authority (NCA) required MTN Ghana to offer Ghanaian investors an opportunity to own part of its shares.

The listing is considered by the NCA as a mechanism to meet this requirement.

Some industry experts have indicated that the offer could be the biggest the country has seen so far.

Nevertheless, there are concerns as to whether only Ghanaians would buy all the shares on offer.

Even though the experts indicate the move to allow Ghanaians to own 35 per cent of the business might face some challenges, some MTN officials have expressed the belief that the company was committed to ensuring that everything would go to Ghanaians.

 

BY Samuel Boadi

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