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MTN launches IPO on Ghana Exchange, Anxiety Heightens in Nigeria

Africa’s biggest telecommunication operator by subscriber base, MTN Group, has launched its Initial Public Offer (IPO) on the Ghana Stock Exchange to acquire a 4G spectrum.

With the investment initiative, the public will have the opportunity to own 35 percent of the telecoms shares.

The offering is part of the requirements by the National Communication Authority (NCA) for acquiring a 4G spectrum in the country.

Commenting on the investment move, the Head of Research at Data Bank, Alex Boahen, expressed hope that the move would excite investors hoping to be part of Ghana’s telecom industry.

He said: “This IPO is welcome news, it’s going to be massive in the market and the investor community is excited about it, especially, the professional investors, the fund managers, mutual fund managers, pension fund managers.

“It’ll offer them the opportunity to further diversify their portfolios, and by doing so, they also reduce the risk profile of their portfolio, so, it’s going to be quite positive on the market.

“For those who are eager to get a piece of Ghana’s fastest-growing telecom sector, this IPO maybe right for them because MTN is a company that most Ghanaians can identify with and with this opportunity to own a share in this company, I think it is something that will excite many people”, Boahen added.

The telco is also in the process of going public in Nigeria with its IPO being expected before the end of the year.

In the proposed capitalization plan, MTN Group is planning to raise about $500 million from the sale of shares in its Nigerian business during the first half of the year to fulfill the terms of a deal struck to settle a fine imposed by the Federal Government through the Nigerian Communications Commission (NCC).

The proposed IPO is in fulfillment of a June 2016 government’s $1 billion fine imposed on it for missing a deadline to disconnect unregistered subscribers amid a security crackdown.

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