Movements on the Ghanaian Stock Exchange (GSE) may observe as an uptick early as MTN Ghana shares began trading on the bourse past. The firm is the first telco to be listed. It also broke records as the most significant Initial Public Offer on the exchange and the first which investors subscribed for using mobile money.
Placing on the GSE was part of the conditions the company consented to in 2015 when it obtained a 4G license.
Features of the offer
A total of 128,152 investors associated, comprising 127,653 retail investors and 499 institutional investors.
1.1 billion cedis raised, much cheaper than anticipated but nearly three times greater than the 326 million cedis Agricultural Development Bank Limited (the biggest IPO on the GSE before MTN) raised in December 2016.
Change surrounds the Nigerian listing.
While operators in the Ghanaian market are in a swell mood, the company’s current troubles in Nigeria could lead to a delay of a planned Initial Public Offer (IPO) on the Nigerian Stock Exchange (NSE).
The company was this week slammed with a $2 billion back taxes by the Attorney General of the Federation (AGF) Abubakar Malami.
Before that, it had been ordered to return $8.1 billion that it had repatriated over the last ten years. The company has, though, restated its commitment to operating in Nigeria.
MTN Nigeria was penalized $5.2 billion in 2015 by the Nigerian Communications Commission (NCC) for failing to disconnect unregistered subscribers after the specified deadline date.
After diplomatic intervention by the then South African President, Jacob Zuma, the fine reduced to $1 billion, payable in tranches. Also, MTN was expected to list on the NSE and tender an apology to the Nigerian Government.