TELECOMMUNICATIONS
MTN faces IPO delay in volatile Nigeria
Fitch’s BMI Research says MTN might seek to delay its initial public offering (IPO) in Nigeria as political risks escalate in the West African nation ahead of general elections. "Mounting Nigerian political risks make for less than ideal market conditions for MTN’s planned listing, likely delaying the operator’s IPO application filing," the company said. The mobile operator is required to list its business in Nigeria as part of its settlement with the government over its failure to disconnect unregistered SIM cards. But despite unfavourable market conditions, BMI said MTN "may yet be pressured by the government to comply with mandatory listing requirements ahead of general elections in [February] 2019". The government might want to "show some semblance of stability in a push to revitalise the country’s capital markets", BMI said. MTN CEO Rob Shuter said last week it planned to conclude the IPO in 2018, if market conditions were "favourable". Though it was a complicated process, "for...
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