MTN Ghana's IPO Seeks To Localize Shares
MTN Ghana on Tuesday launched its Initial Public Offering (IPO) seeking to give a fraction of the company to Ghanaians through the floating of some of its shares. MTN is targeting to raise over GHC4 Million with its IPO.
The IPO forms part of MTN’s 4G LTE license requirement in which the company had to sell 35% of its shares to Ghanaians by June this year.
MTN Ghana successfully bid for the License from the NCA in 2015 which took effect from June 2016 and is valid for a renewable period of 15 years. This License allows MTN Ghana to offer 4G LTE mobile internet services to its customers with extensive benefits.
From 1996 when Scancom made history by being the first company to introduce GSM technology in Ghana, it has seen tremendous the expansion. Upon acquisition of the company in 2006, MTN inherited 2.5 million subscribers and quickly achieved the 10 millionth subscriber milestone within 5 years. The company can today boast of over 17 million subscribers.
MTN Ghana has continued to lead the way with many more firsts in Ghana. First in attaining national coverage in all 10 regions, the Commercial launch of 3G, Mobile Money, CSI Foundation and nationwide 4G Mobile service, just to name a few.
Over the years MTN has evolved, expanded its focus, technology, relationships, partnerships, have grown the brand service reach. With a robust network, three state-of-the-art data centers, the West African Cable System (WACS) and over 5000 KM of fiber, MTN continues to deliver extensive, reliable, fast voice and data services to Ghanaians.
In recent times, the company reaffirmed its commitment to this country by investing in an ultra-modern office complex, setting a new standard for development along the Independence Avenue as we are all witnessing. Our Experience Centres have not been left behind.
Most of our branches have been transformed into more spacious and interactive flagship shops. A few weeks ago, in line with our Digital Channel strategy, we started piloting a self-service kiosk which will provide 24/7 selected services such as sim change and airtime purchase amongst others.
MTN has made significant investments in attracting and retaining talents to enable them to deliver on the strategic agenda of the business. We cherish the commitment of our People to the success of our business and have worked hard to attain the Investor In People global accreditation (Gold Advance).
Today, MTN has more than 200,000 retailers and our Mobile Money service has contributed significantly to employment creation with jobs for over 100,000 merchant points across the country who received a total of 4.4 million USD (GHS19.6m) as commission in 2017.
This has been made possible through best customer experience, returns and efficiency focus, Igniting commercial performance; growth through data and digital; Hearts and minds; and Technology excellence.
MTN is the leading network in Ghana with the best in Mobile Voice, with 17.8m subscribers representing a 47.6% market share, Ghana’s best in Mobile Data, with 12 million active subscribers, representing a 56.5% market share, and Ghana’s best in Mobile Money, with 11.6m, registered wallets, and a 93.9% market share of mobile money float.
In the area of technology, MTN continues to invest in services as it works closely with technology partners.
MTN's world-class rural solution has been recognised by the GSMA at the recent Mobile World Congress in Barcelona. It was adjudged “Best Mobile Innovation in Emerging Markets”.
This solution is being rolled out in a hundred communities in partnership with GIFEC to ensure that deeply unserved communities are also connected to the rest of the world in the most economical way.
The telecom giants have taken a key bet on Home Broadband as the first step in providing total digital solutions to urban homes.
To this end, MTN Business division also rolled out fibre to over 14,000 homes within one year. All these have led to a significant progress in smartphone growth which contributed to increasing MTN data revenues and usage.
This year, the company has earmarked $144 million as an investment in CAPEX only.
MTN Ghana has over the past decades kept families and friends easily connected, grown businesses, improved financial and digital inclusion, creating jobs and making significant contributions to government revenues.
MTN Ghana is well positioned to benefit significantly from the progressive turnaround of Ghana’s economic fortunes.
The company is optimistic Ghana's status as the second largest, fastest growing economy in West Africa, relatively stable currency and falling inflation and interest rates would be a boon for the industry and business in the near term.
Growth and innovation in Ghana’s telecom industry, which has been ranked as the most attractive place for telecom investment by BMI, will continue to be driven by steady capital investment, sustained migration to high speed 4G network, accelerated data growth, market consolidation and an increase in mobile financial services such as mobile money, mobile insurance, mobile banking, mobile investments, mobile shopping, to name a few.