Telecommunications giant MTN’s Ghana subsidiary Scancom, or MTN Ghana, has launched its initial public offer (IPO) with the intention of listing on the Ghana Stock Exchange (GSE).
The listing formed part of the localisation requirement as part of the awarding to MTN Ghana of a fourth-generation and long-term evolution licence in the 800 MHz spectrum band in 2015.
The IPO, which will close on July 31, offers Ghanaian investors a 35% ownership share in MTN Ghana, as guided by the National Communications Authority (NCA) requirements.
Under the IPO, MTN Ghana is offering up to 4.6-billion shares – at an enterprise value of about C10-billion – comprising a combination of newly issued shares and the sale of existing shares held by MTN Group through its wholly-owned subsidiary Investcom Consortium Holding.
The Securities and Exchange Commission and the GSE have approved the IPO and the listing respectively.
The minimum amount to be raised for the offer to be deemed successful and for the listing to proceed is about C350-million, which represents about 10% of the total offer size.