MTN has launched an IPO for a 35% stake in its Ghanaian unit.
The group’s CEO Rob Shuter confirmed in early May that MTN was expected to meet its goal of listing both its Ghanaian and Nigerian businesses by the end of 2018.
The Ghana IPO is a condition stipulated by the country’s government in exchange for granting MTN a 4G licence, as part of a drive to increase local ownership of international firms operating in Ghana. Accordingly, the float is being aimed at domestic investors, with only 5% of shares available for international investors.
MTN Ghana CEO Ebenezer Asante noted that the IPO would resonate with Ghanaian citizens as they will be able to buy shares via the operator’s mobile money platform. He said: “people the length and breadth of the country do not need to know where the Ghana Stock Exchange is located, they have the Ghana Stock Exchange on their phones.”
The operator leads the market in Ghana with a share of 55% at the end of December 2017, on 17.83 million subscribers. It is aiming to raise GHS3.48 billion ($747 million) for the 35 per cent stake.
While the Ghana IPO is on track, MTN has said that it is “perfecting” the details of its upcoming Nigerian float. Additionally, a spokesperson from the group played down previous reports that MTN expected to generate $500 million from the IPO, stating that the operator had not determined a specific value or timeline.