MTN’s Ghana is seeking to raise GH¢3.47 billion ($743 million) in a 35 per cent Initial Public Offering (IPO).
MTN Ghana will sell about 4.63 billion shares at 0.75 pesewas per share.
The public offering, which closes at the end of July, is one of the requirements MTN agreed to with Ghanaian regulators in 2015 to allow for the introduction of its fourth generation (4G) high-speed mobile data network.
If successful, MTN Ghana will be the most valuable company to be listed on the Ghana Stock Exchange, possibly on September 5, 2018.
The IPO, which has been described as the largest public share offer in the history of Ghana’s capital market, is to ensure that a wide segment of the Ghanaian population have the opportunity to participate in the process and own a part of the company’s shares.
Speaking at the launch of the IPO yesterday, Mr Ebenezer Asante, Chief Executive Officer (CEO) of MTN Ghana, said with the public offer, they were challenged to ensure that MTN Ghana remained profitable, robust and a sustainable digital company that would continue to provide excellent services to all Ghanaians.
He said the IPO seeks to give Ghanaians the opportunity to own a share in MTN as they continue to maintain their track record of investing in its business, focusing on high growth opportunities and delivering attractive financial returns.
“Today, our localisation has gone beyond just getting a few investors to having a share of the company. The exciting thing about this offer is that we are seeking to get as many Ghanaians as possible to invest in MTN Ghana.”
Mr Asante said MTN has over the years invested significantly in its network, people, communities and its staff, its distributions, the country as a whole through corporate taxes and its future, which includes data, digital and mobile financial services.
“Sustaining these investments, along with our unrelenting focus on innovation and development tailored towards our customers’ needs, should ensure that MTN Ghana remains a pacesetter and maintains its position as the best telecoms operator in Ghana.”
He noted that growth and innovations in Ghana’s telecom industry would continue to be driven by steady capital investment, sustainable migration to high-speed 4G network, accelerated data growth and an increase in mobile financial services such as mobile money.
He, therefore, stated that MTN would continue to invest in its services as they continue to work closely with technology partners.
“We are humbled of our history and accomplishments achieved through the decade: keeping families and friends connected, growing businesses, improving financial and digital inclusion, creating jobs and making significant contributions to government revenues.”
Mr Asante expressed his gratitude to the government and the people of Ghana for the support they have given to MTN over the years, adding that “we look into the future with brighter hope, poised to lead the delivery of a bold new digital world”.
Launching the IPO, Ken Ofori-Atta, Minister of Finance and Economic Planning, congratulated MTN of the milestone, and promised that government would keenly support MTN and the technology industry in their bid to transform the Ghanaian society.
He said getting onto the Ghana Stock Exchange (GSE) was a great thing to do on the part of MTN, adding that he expects that it would be a real game changer for the GSE.
Explaining how Ghanaians can own a share of MTN, Mr Kwabena Osei Boateng, Managing Director of IC Securities, said interested applicants may contact receiving banks and MTN branches.
He noted that for the first time anywhere in Africa or the world, interested participants can buy the shares through mobile money.
“This channel demonstrates another use case for mobile money and will accelerate financial inclusion in the capital markets of Ghana, for many people in the length and breadth of this country who would not ordinarily have access to the capital markets.”
MTN is the leading mobile operator in Ghana with 17.8 million voice subscribers as of September, ahead of AirtelTigo, Vodafone and Nigeria’s Globacom.
Last December, MTN signed a GH¢510 million ($112 million) syndicated loan from nine banks and was oversubscribed by GH¢590 million.