MTN Ghana lists on GSE by the end of 2017
Ghana’s number one telecom company, MTN Ghana, has disclosed that, the telecom giant was working around the clock, to list on the Ghana Stock Exchange (GSE) by the last quarter of 2017, as part of the conditions under which it secured the 4G license in 2015.
MTN commenced moves to list on the GSE last year, after the company had spent US$67.5million to acquire one of available 4G license in 2015 which is valid for the next 15 years.
The company is hoping to raise some $500 million in order to allow interested Ghanaians to own a part of the business by offloading 35% of its shares on the GSE.
Speaking to the media, after an MTN Stakeholder and Media forum on its performance for 2016, the Chief Executive Officer of MTN Ghana, Mr. Ebenezer Asante said, the company was currently waiting on the Securities and Exchange Commission to approve its prospectus, even though they have been cleared off all initial issues it had had with its regulators.
“Since we acquired the license, we have engaged both regulators, the NCA as well as the central bank and also the Securities and Exchange Commission. There were a few issues that we needed to trash out with our regulators but all that has been finalized. With that out of the way, we also now have to finalized the prospectus so that the Securities and Exchange Commission can look at it and give approval. Once we receive approval, we would be in the position to launch the 4G localization that came with the license.”
“As for the exact timelines, am not able to tell you that, because I am not a regulator. But all that I can say is three months from the date we receive the approval from the SCC, we will be in the position to launch,” he added.
If the listing on the stock exchange is successful, MTN Ghana would be exempted from the capital market local content policy which enjoins companies operating in specific areas including telecom, mining, oil and gas to list a minimum percentage of their shares on the Ghana Stock Exchange within 5 years of commencement of operations in Ghana.
In 2016 the telecom giant MTN increased its revenue from ¢2.3 billion in 2015 to ¢2.7 billion in 2016.
The company also paid ¢1.1 billion to government in taxes and fees in 2016, with 713 million cedis going to the Ghana Revenue Authority (GRA), 51.8 million cedis went to the National Communications Authority (NCA)/ GIFEC, while 258 million cedis went to the NCA for the 4G, LTE and 85 million cedis to SIIT.
During the period, the telecom operator increased its subscriber base by some 18.7% to 19.3 million.
Also, the telecom operator’s data revenue went up to 65.7%, contributing 42% to total revenue while digital revenue contributed 48% to data revenue.