Accra, Ghana, May 30, 2018//-MTN’s Initial Public Offer (IPO) has electrified the Ghana Stock Exchange (GSE) as investors are jostling to grab shares of the leading telecom company in the West African country.
On Tuesday, 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.
The Chief Executive Officer (CEO) of MTN Ghana, Ebenezer Twum Asante noted that the company’s listing would give room for customers to own part of the company.
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 Asante was quick to add that the entire IPO period would last for two months after which the allotment would begin.
“We are hoping that by September, we would have ended the entire process for the listing to begin”, told participants at the IPO launch in Accra.
Job creation
MTN Ghana has created several jobs for over 100,000 merchant points across the country, while thousands of direct and indirect jobs have been created for Ghanaians.
The company according to its CEO received 4.4 million dollars as commission in 2017,adding that it paid a total tax of GH¢1.218 billion taxes for 2017.
In 1996 Scancom became the first to introduce GSM in Ghana and when MTN assumed office in 2016, it inherited 2.5million subscribers which became 10million after five years; now customers stood at over 17 million, Mr Asante said.
Launching the IPO, the Minister of Finance, Mr Ken Ofori-Atta, assured the MTN Ghana that the government would continue to work with it to bring significant transformation to the Ghanaian economy.
“Government will continue to support the business operations of MTN Ghana keenly to bring relief to the people”.
He used the occasion to call on the public to take the unique opportunity to massively invest in MTN’s IPO to become shareholders of the company, stressing companies like MTN listing on the Ghana Stock Exchange would broaden the base of the Exchange and give it more legitimacy for people, who were unsure to invest.
African Eye Report
