Home Business News MTN Ghana raises $237m via IPO, misses share sale target

MTN Ghana raises $237m via IPO, misses share sale target


The business unit of MTN Group Limited in Ghana has raised 1.1 billion cedis ($237 million), selling about a third of the shares the wireless carrier made available in an Initial Public Offering (IPO)

According to a report today on the deal, MTN, Africa’s biggest mobile-phone company by subscribers, sold 1.5 billion securities of the 4.6 billion shares at 75 per cent each when it offered a 35 per cent stake in the unit in May, the report showed.

The shares will be listed on the Ghana Stock Exchange (GSE) with trading due to start Sept. 5, according to the sale’s prospectus.

MTN confirmed the result in a statement emailed by the bourse on Thursday.

Even though MTN failed to sell all the shares on offer, the proceeds are more than three times larger than the previous biggest IPO in Ghana, when Agricultural Development Bank Ltd. raised 326 million cedis in December 2016.

The IPO result comes as MTN fights a surprise order late Wednesday from Central Bank of Nigeria (CBN) to refund $8.1 billion it says was repatriated improperly from the country over eight years through 2015.

The Johannesburg-based company sold shares in Ghana to meet conditions agreed to with the government in 2015, when it acquired the right to use spectrum for fourth-generation wireless services.

The number of securities sold account for 12.5 percent in the unit as the parent’s holding lowers to 85 percent, with the rest held by existing minority holders, Kwabena Osei-Boateng, Managing Director of Transaction Adviser IC Securities, was quoted in the report.