MTN IPO Goes Live on Ghana Stock Exchange

MTN shares has commenced trading as the first telecommunication company to be listed on the Ghana Stock Exchange.

This listing will positively impact the Ghana Stock Exchange by significantly increasing its market capitalization by over GH ¢ 9.22billion from GH ¢ 55.97 to GH65.19b (16.4%). And also, improve liquidity on market.

The Deputy Managing Director of Ghana Stock Exchange Mr. Ekow Afedzie said the listing is the largest IPO amount raised on the Exchange in its 28 years history.

He indicated that will be counted among the list of African countries that MTN is listed on their market.

Mr. Afedzie said they are delighted that such companies raise capital and list because investment in viable businesses like MTN lead to wealth creation for Ghanaians as well as:

He added that this will bring more job opportunities for our youth; contribute greater taxes and more social projects to Ghanaian communities; share their fortunes and risks with their shareholders including Ghanaians.

“This is where a capital market in a developing economy as Ghana’s must lead us to. That is why we will continue to engage the private sector to use the market,” the DMD stated.

According to him, the Exchange in its strategic plan for the medium term will among other things facilitate the development of Ghana as a financial hub in Africa aspart of the Government’s Agenda.

He added that it will also develop policies to make GSE an alternative investment destination for issuers and investors and thereby contribute significantly towards the development of the economy.

The Chief Executive Officer (CEO) of MTN Ghana, Mr. Selorm Adadevoh, said since its establishment in the Ghanaian market, the company has always been on a consistent winning spree as the result of the great collaboration they have enjoyed from all the people who have an interest in their business.

He indicated that this is the 1st IPO in the world to use Mobile Money as a medium to subscribe shares.

“This demonstrates another use case for Mobile Money and will accelerate financial inclusion in the capital markets of Ghana, for many people in this country who would not ordinarily have access to the capital markets. This shows that they trust our system and services,” the CEO intimated.

On May 29, 2018 MTN Ghana launched their Initial Public Offer in Accra with subsequent launches across all the regional capitals of Ghana. They embarked on listing on the Ghana Stock Exchange as the preferred mechanism to meet the NCA’s requirement for the 4G license.

Listing on the GSE gave all Ghanaians, both institutional and individuals, an

opportunity to participate in the ownership of Ghana’s No.1 network.

Considering the value of business, their Regulators approved a minimum threshold required for the Offer to be declared successful.

The minimum success threshold was 10% of the offer which is about GHS 347 million.

MTN Ghana exceeded the threshold and the final allotment was approved by the SEC on 29 August 2018.