MTN Ghana kicks off its initial public offering
MTN kicked off the initial public offering (IPO) of its Ghanaian subsidiary on Tuesday.The mobile network hopes to sell up to 35% of its regional unit’s shares ahead of its listing on the Ghana Stock Exchange (GSE) to comply with localisation requirements.MTN Ghana is expected to have a market capitalisation of about 10-billion cedi, about R27bn at Tuesday’s exchange rate of R2.71 per cedi. MTN Ghana’s revenue for 2018 is expected to be 4-billion cedi, and is forecast to grow to 5.4-billion cedi in 2020.Its net profit is expected to be 718-million cedi in 2018, and is forecast to grow to more than 1-billion cedi in 2020.The minimum amount to be raised for the offer to be deemed successful and for the listing to proceed is about 350-million cedi, which represents about 10% of the total offer size. Given the objective of targeting a broad base of Ghanaian investors, allocation to non-Ghanaian investors is restricted to 5% of the 4.6-billion shares MTN Ghana is offering.MTN said the of...
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