CEO: No Extension of MTN Ghana IPO Beyond its Deadline

MTN Ghana CEO, Selorm Adadevoh addressing journalists in Accra

Accra, Ghana, July 18, 2018//-MTN Ghana says it won’t extend its ongoing Initial Public Offer (IPO) on the Ghana Stock Exchange (GSE) beyond the July 31, 2018 deadline.

The  Chief Executive Officer (CEO) of MTN Ghana, Selorm Adadevoh made this known at the press briefing in Accra today to update journalists on the telecom giant IPO.

In May 2018, MTN Ghana became the first telco in Ghana to offload 35 percent of its stake to the Ghanaian Public through IPO.

The landmark IPO is in fulfillment of an agreement with the National Communications Authority (NCA) in 2015 for the introduction of its fourth generation (4G) data network in the country.

The telecom giant is aiming to raise GH¢3.47 billion at 0.75 pesewas per share which industry analysts have described as a good news for the Ghanaian bourse.

According to him, the transaction, which started from May 29 to July 31, 2018 would have a positive impact on the local market, expanding the frontiers of inclusion.

 Mr Adadevoh said: “We are approaching the seventh of the IPO. It is quite exciting for us because it is going to increase the trading activity on the Ghana Stock Exchange”.

He added that the company was very confident that  they would meet the target number of shares by the close of the IPO, stressing: “We are picking signals that the IPO is going on well”.

The Chief Finance Officer of MTN Ghana, Modupe Kadri used the occasion to assure the public that the IPO proceeds won’t be used to pay the company’s recent syndicated loan.

He was quick to explain that the proceeds from the IPO would be used for network expansion, upgrading of existing telecoms infrastructure, among others”.

 Mr Kadri also dispelled rumours  that the telecom service provider would repatriate proceeds from the IPO immediately to investors in its home country of South Africa.

He however explained: “The Bank of Ghana has agreed to us in the repatriating of the proceeds after the IPO. When the IPO closes, we will have another engagement with the Bank of Ghana for their direction on how to repatriate the proceeds”.

African Eye Report

 

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