MTN completes IPO …raises GH₵1.1bn

Telecommunication giants, MTN Ghana have announced the successful completion of its Initial Public Offer.

According to a press statement, the offer raised GH₵ 1,146,589,464.75, representing 32.97% of the total offer amount .  The transaction serves as the centerpiece of MTN Ghana’s localization effort and demonstrates its long term commitment to Ghana.

Thirty eight percent of Ghanaians applied for the IPO, with the telecom giants garnering GH₵443m, as opposed to sixty-one percent foreigners whose shares amounted GH₵702m.

In spite of the low patronage from Ghanaians, MTN Ghana says it is satisfied with the entire process, given that of the 128,152 applicants, 127,826 were Ghanaians; and of the GH₵1,146,589,464.75 raised under the Offer, GH₵ 443,631,446.25, representing 38.69%, was raised from Ghanaians.

By raising GH₵ 1,146,589,464.75 from 128,152 applicants, the Offer makes history as the largest primary share offer in the history of the Ghana Stock Exchange and enables many Ghanaians from all walks of life to own a share in one of Ghana’s largest, most visible and well respected companies.

The Offer period ran from 29 May 2018 to 31 July 2018 with investor demand exceeding the minimum (GHS 347,804,590) required to be raised for the Offer to be declared successful.

The Offer consisted of:

a) a public offer of up to 4,637,394,533 ordinary shares of MTN Ghana valued at GHS 3,478,045,900 at an Offer Price of GHS 0.75 per share (the “Offer Shares”), representing up to 35% of the issued shares of MTN Ghana after the offer, to Qualifying Applicants (as defined in the Prospectus); and

b) a listing of all the Offer Shares and the already issued 10,760,000,000 ordinary shares of MTN Ghana (the “Existing Shares”) (the Offer Shares and the Existing Shares, together, the “MTN Ghana Shares”) on the GSE (the “Listing”)

IC Securities (Ghana) Limited (“IC Securities”) acted as Financial Adviser and Sponsoring Broker to MTN Ghana in respect of the Transaction.

IC Securities will create CSD accounts for successful applicants who did not provide details of their CSD accounts as part of their application, and their respective allotments will be credited to the respective CSD account created for them.

The release also explained that a number of applicants who applied for shares have received notifications to update their identification documentation (“IDs”).

Applicants who have received such notifications  are expected to visit any MTN Ghana Service Centre with updated IDs as a matter of urgency. As a result of KYC considerations these applicants will have to update their IDs in order to be able to trade their shares from the first day of trading. Per the Offer prospectus, an appropriate ID is a valid national passport; a driver’s license; a national ID; a national health insurance ID or a voter’s ID. Until applicants have updated their information and ID cards, their shares will be held in a nominee account at the CSD.

After the applicants have updated their IDs, their shares will be transferred from the nominee account to their account.

The first day of trading of the MTN Ghana shares is expected to be 05 September 2018.

Shareholders will be able to monitor and trade their MTN Ghana shares by contacting a licensed dealing member of the Ghana Stock Exchange.

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