Big day for Ghana’s stock exchange as MTN lists its local unit
Even though MTN sold only a third of the shares available in the IPO, it is still three times bigger than Ghana’s next biggest IPO
Accra — Accra’s share market is poised for a massive boost in liquidity on Wednesday when shares start trading in MTN Group’s local unit. While MTN sold only about a third of the shares available in the initial public offering, the 1.1-billion cedis ($238m) raised is still more than three times larger than the next biggest Ghana IPO. The sale attracted thousands of individual investors and vastly increases the number of shares available for buying and selling. "It’s been exciting because investors have been crying for such blue-chip stocks to be on the market," Nana Kofi Agyeman Gyamfi, a senior analyst at Accra-based Bora Capital Advisors, said by phone. "The IPO got a lot of retail investors, some of whom sold stakes in existing shares just to have enough money to buy MTN. It will lift the gloom on the market because of the past four years’ poor performance." Africa’s largest mobile-phone company sold 1.5-billion shares in its Ghana unit at 75 pesewas each, a large addition to pot...
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