Telecom giant MTN Ghana will finalize processes to float shares on Ghana Stock Exchange (GSE) this year – 2017.
MTN commenced moves to list on the GSE last year – 2016, as part of conditions under which it secured the 4G license in late 2015.
The company which spent US$67.5million to acquire the license which is valid for the next 15 years, is hoping to raise about 500 million dollars in order to offload 35 percent of its business in Ghana to locals.
If successful, MTN will be exempted from the capital market local content policy which enjoins companies operating in specific areas including telecom, mining, oil and gas to list a minimum percentage of their shares on the Ghana Stock Exchange within 5 years of commencement of operations in Ghana.
Chief Executive Officer of MTN Ghana, Mr. Ebenezer Asante speaking after an MTN Stakeholder and Media forum on its performance for 2016 said the company had cleared initial issues it had had with regulators.
“The localization requirement is a requirement that came with the 4G license and it’s very clear from the license that 35% of MTN should be moved into Ghanaian hands and since we required the license we have engaged the regulators both in the NCA as well as the Central Bank and also with the Securities and Exchange Commission; there were a few issues that we had to trash out with the regulator and that has been finalized, so with that out of the way we have to just also finalize the prospectus so that the Securities and Exchange Commission can look at it and give approval,” he explained.
He added that MTN will launch the IPO immediately the NCA approves the move.
“When we receive approval from the NCA, we would be in the position to launch the 4G localization that came with the license,” Mr Asante said.
He further noted that “in terms of the exact time lines I’m not able to commit to because I am not a regulator and I should not be seen to be stampeding the regulator through this interaction so all that I can say is that three months for the receipt of the approval from the SEC we will be in the position to launch and it should be before the end of this year”.
Join GhanaStar.com to receive daily email alerts of breaking news in Ghana. GhanaStar.com is your source for all Ghana News. Get the latest Ghana news, breaking news, sports, politics, entertainment and more about Ghana, Africa and beyond.
