Business News of Wednesday, 30 May 2018
MTN Ghana on Tuesday launched its Initial Public Offer (IPO) to offload 35 percent of its stake to the Ghanaian Public.
The offer, which is in fulfilment of an agreement with the National Communications Authority in 2015 to allow for the introduction of its fourth generation data network, aims to raise GH¢3.47 billion at 0.75 pesewas per share.
Mr Ken Ofori-Atta, the Minister for Finance, launching the IPO, said the government would continue to work with MTN Ghana as it listed on the Ghana Stock Exchange (GSE) 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 said.
He called on telecommunication operators to support the government with the needed technology, saying “we can use technology to support the growth of the economy”.
The Finance Minister tasked telecommunication companies to find lasting solutions to issues of data protection to enable their customers to have confidence in them since others were doing same to protect information of their clients.
On the IPO launch, he called on the public to take the unique opportunity to massively invest in MTN’s IPO to become shareholders of the company.
He said 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.
Mr Ebenezer Twum Asante, the Chief Executive Officer (CEO) of MTN Ghana, said the company was listing its shares to meet conditions agreed in 2015 as a requirement to use a 4G spectrum that can carry high-speed mobile data for customers.
“It will give room for customers to own part and make MTN the first telecommunication to be on the GSE,” he added.
He said the transaction, which started from May 29 to July 31, would have a positive impact on the local market, expanding the frontiers of inclusion.
He said the entire offer period was for two months after which the allotment will begin, “We are hoping that by September, we would have ended the entire process for the listing to begin”.
Mr Asante said MTN had created employment for over 100,000 merchant points across the country and received 4.4 million dollars as commission in 2017, adding that it paid a total tax of GH¢1.218 billion taxes for 2017
He said 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 were over 17 million.
Mr Kwabena Osei Boateng, the Chief Finance Officer, insecurities, said anyone, 18 years and above could buy a minimum share of 100 shares at GH¢7.50p.
He noted that the IPO, the first in the telecommunication industry can also be acquired by corporate entities, insurance companies, pension managers through MTN online, offices, licensed stockbrokers, bank partners, among others.