MTN Targets to Sell 4.6 Million Shares
Ghanaians can now own a part of the profits of the African telecom giant MTN. On Tuesday, 29 May 2018, MTN launched their Initial Public Offering (IPO) targeting to sell 4.6 million shares at 75 pesewas per share. If all the shares are snapped up, MTN would have raised nearly Ghs3.48 billion. The catch in this IPO is the mobile money avenue through which investors can buy their shares. According to the CEO of MTN Ghana, this is a new way of entering into the stock market. The 35% of local share ownership placed on the market is a condition for the acquisition of the 4G license which MTN has already captured nearly 80% of the market. This is the biggest IPO launch which now values MTN at GHS9.94 billion. In terms of market capitalisation MTN would come third to Tullow Oil and AngloGold Ashanti on the Ghana Stock Exchange market if patronage of the shares goes according to plan. The sale of shares ends on 31st July 2018 but the entire process ends in September where the listing would be completed.
The launch gives opportunities for Ghanaians to taste a bit of diversification into share investment, especially those who have always seen investing in shares as some ‘out-of-range’ investment activity. Individuals should however seek expert advice to establish and understand their own risk appetite as well as the risks in investing in shares like that of MTN.
www.ghanatalksbusiness.com would follow up on progress of the mega MTN IPO.
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