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September 1, 2018 | Business & Finance

MTN Ghana Records Gh₵1.1 Billion From Its IPO

Emmanuel Ajarfor Abugri
MTN Ghana Records Gh₵1.1 Billion From Its IPO

MTN Ghana has raised Gh₵1,146,589,464.75 of the expected Gh₵3,478,045,900, at the end of the Initial Public Offer (IPO) representing 32.97% of the total Offer amount.

The Offer which ran from 29th May, 2018 to 31st July, 2018 consisted of a public offer of up to 4,637,394,533 ordinary shares of MTN Ghana valued at Gh₵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.

Even though the figure has fallen short of about 67percent of the target, MTN says with investor demand exceeding the minimum (GHS 347,804,590) required to be raised for the Offer, it can be declared successful.

Speaking at a news briefing in Accra, the Chief Executive Officer (CEO) of MTN Ghana, Elorm Adadevoh said of the 128,152 applicants, 127,826 were Chanaians; 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.

He indicated that 499 institutional applicants who bought 1,367,386,080 shares amounting to Gh₵1,025,539,560 represented 89.44percent.

Mr. Adadevoh added that the remaining 127,653 retail applicants who bought a total of 163,088,280 shares amounting Gh₵121,049,904.75 represented 10.56percent.

According to him, 108,434 applicants subscribed through the MTN Mobile Money portal representing 84.6% of the number of applicants.

He noted that the first day of trading of the MTN Ghana shares is expected to be launched on next month September 5.

The CEO emphasized that shareholders will then be able to monitor and trade their MTN Ghana shares by contacting a licensed dealing member of the Ghana Stock Exchange.

Mr. Adadevoh stated that successful applicants will be allotted all the shares they applied for. Applicants with Central Securities Depository (CSD) accounts will have their CSD accounts credited with their allotment by 4th September, 2018 by 5:00pm.

He added that 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.

“A number of applicants who applied for shares have received notifications to update their identification documentation ("IDs"). Applicants who have received such notifications should visit any MTN Ghana Service Centre with updated IDs as a matter of urgency,” he posited.

Mr. Adadevoh said as a result of KYC considerations these applicants are required 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 ah he CSD. After the applicants have updated their IDs, their shares will be transferred from the nominee account to their account,” he intimated.

According to him, by raising GHS 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.

“This is the largest Offer ever in the history of the Ghana Stock Exchange (GSE). It has doubled the size of all the IPOs put together in the history of GSE,” he posited.

Mr. Elorm Adadevoh indicated that the Offer which ran from 29th May, 2018 to 31st July, 2018 consisted of a public offer of up to 4,637,394,533 ordinary shares of MTN Ghana valued at Gh₵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.

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