MTN Group announced that its subsidiary Scancom (MTN Ghana) has launched its initial public offering of shares, with the intention of listing on the Ghana Stock Exchange (GSE). The offer is expected to be open for nine weeks and close on 31 July.
A successful listing would meet the required localization condition under which MTN Ghana secured its 4G licence in late 2015. A key objective of the listing is to target a broad base of Ghanaian investors to share in the risks and rewards of ownership of MTN Ghana, the company said
The Securities and Exchange Commission and the GSE have approved the IPO and the listing respectively. Under the IPO, the company is offering up to 4.64 billion MTN Ghana shares, consisting of a combination of newly issued shares and a sale of existing shares held by MTN Group through its wholly-owned subsidiary Investcom Consortium.
The public offer represents up to 35 percent of the issued shares of MTN Ghana, which implies an enterprise value of around GHS 10 billion for MTN Ghana. As per Ghana market standards, the offer is a fixed price offer where a volume of shares is made available at a fixed price. The minimum amount to be raised for the offer to be deemed successful and for the listing to proceed is approximately GHS 0.35 billion, which represents 10 percent of the total offer size.
Given the objective of targeting a broad base of Ghanaian investors, allocation to non-Ghanaian investors is to be restricted to 5 percent of the issued shares of MTN Ghana.
