Telecommunication Network, MTN Ghana, has officially launched its Initial Public Offer (IPO) as it seeks to sell 35% of its shares to the general public.
The MTN Ghana Share Offer which will be open from May 29, 2018, to July 31, 2018, and possibly listed on the Ghana Stock Exchange on September 5, 2018 seeks to raise an amount of GH¢3.47 billion.
By issuing 4.6 million shares, MTN is hoping to sell each share at GH75p. However, the minimum subscription of each qualifying applicant under the offer must be for a minimum of 10 offer shares amounting to GH¢ 7.50 and, thereafter, any additional Offer Shares subscribed for must be in multiples of 10 amounting to GH¢ 7.50, with no maximum on subscriptions.
Investing public can now buy their shares from some selected banks and through MTN mobile money.
The move is part of the requirement by the National Communication Authority (NCA) for acquiring a 4G spectrum.
In 2015, MTN Ghana won a bid for a 4G licence in the 800 MHz spectrum. Under the terms of the licence, the NCA required MTN Ghana to offer Ghanaian investors an opportunity to own part of its shares. The listing is considered by the NCA as a mechanism to meet this requirement.
Even though some experts have speculated the move to allow Ghanaians to own 35 percent of MTN Ghana might face some challenges, some MTN officials have expressed the belief that the company is committed to ensuring that Ghanaians will duly benefit from the offer.
If MTN succeeds in raising the money from its Initial Public Offer, the Telco will be the first to be listed on the local bourse.