MTN headquarters in Fairlands, Johannesburg Bloomberg / Waldo Swiegers
MTN headquarters in Fairlands, Johannesburg Bloomberg / Waldo Swiegers

Accra — MTN will start selling more than a third of its Ghanaian unit for $754m next week in an initial public offering (IPO) that will be 10 times larger than the West African nation’s previous biggest share sale, according to a person familiar with the matter.

The offer to raise 3.48-billion cedis of stock will start on May 29 and close at the end of July, said the person, asking not to be identified because he/she is not authorised to speak publicly. Africa’s biggest cellphone company by subscribers is offering 4.64 billion shares in the unit at 75 pesewas each, representing 35% of its value, according to the person.

MTN said on May 3 the offer would start at the end of the month. The company is listing the stake on the Ghana Stock Exchange to meet conditions agreed to with the government in 2015, when it acquired the right to use fourth-generation spectrum, a high-speed mobile data carrier for customers.

MTN declined to comment. Kwabena Osei-Boateng, MD of IC Securities, which is arranging the placement, said by phone that he could not immediately comment.

If successful, the share sale will compare with the Ghana Stock Exchange’s previous biggest IPO, when Agricultural Development Bank raised 326-million cedis in December 2016.