MTN Ghana Share Sale Suffers Setback, Records 33% Subscription

By Modupe Gbadeyanka

MTN Ghana has finally concluded the Initial Public Offering (IPO) it started some weeks ago, though the telecommunications giant was unable to realized the total amount it was planning to raise from the exercise.

Business Post gathered from the statement issued by MTN Ghana yesterday to the Ghana Stock Exchange (GSE) that only about one third of the shares it offered, precisely 32.97 percent of the total offer amount, were subscribed to by both retail and institutional investors also comprising Ghanaians and foreigners.

According to the statement obtained by Business Post, MTN Ghana sold 1.5 billion shares of the 4.6 billion units it offered at GHS 0.75 each, amounting to 1.2 billion cedis ($237 million), the biggest amount so far raised in the GSE history.

Recall that in May 2018, MTN Group Ltd offered 35 percent stake in its unit in Ghana with trading of the shares raised from the IPO due for September 5, 2018.

Business Post reports that while institutional investors accounted for 89.44 percent of the offering, retail investors constituted only 10.56 percent.

A further breakdown showed that while the exercise had 38.69 percent subscriptions from Ghanaian investors, non-Ghanaian investors made up the remaining 61.31 percent.

MTN Ghana said, “All 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 September 4, 2018 by 5:00pm.

The MTN Ghana conducted the IPO from May 29, 2018 to July 31, 2018 and it was to meet conditions agreed to with the local authorities in 2015, when it acquired the right to use spectrum for fourth-generation wireless services.

Modupe Gbadeyanka is a fast-rising journalist with Business Post Nigeria. Her passion for journalism is amazing. She is willing to learn more with a view to becoming one of the best pen-pushers in Nigeria. Her role models are the duo of CNN's Richard Quest and Christiane Amanpour.

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