MTN Nigeria to go public in 2018, raises $500 Million through IPO sales

*This deal will give 30 percent of MTN Nigeria to the public.

MTN Group Ltd is finalising plans to list its Nigerian subsidiaries on the Nigerian Stock Exchange (NSE) this year. The deal is also expected to raise about $500 million for the company.

MTN is Nigeria’s biggest telecommunication company with over 50 million subscribers as of September 2017. The Nigerian market accounts for about 21.7 percent of company’s total subscribers and over 45 percent of its annual group revenue.

MTN Nigeria going public is one of the terms of a deal struck with the Nigerian government to settle a $5.2 billion record fine imposed on the company for regulatory breaches.

Why MTN was sanctioned

The Nigerian Communications Commission (NCC) in 2015 sanctioned the company for missing a deadline to disconnect unregistered subscribers amid a security crackdown in the country. This penalty triggered the resignation of company’s group chief executive officer, a first-ever full-year loss and a slump in the company’s share price.

In 2016, a deal was struck with the government and the fine was reduced to $1 billion with MTN Nigeria listing on NSE as a term in the agreement.

According to a report by Bloomberg, Standard Bank Group Ltd. and Citigroup Inc. are the appointed financial advisers for this deal. Also, 30 percent of the company’s Nigerian business is stated to be considered for listing on the Lagos bourse.

Majority of the shares are planned to be sold to local institutions and investors.

If successful, the share sale will be the biggest on the Lagos bourse after Starcomms Plc, which raised $796 million when it listed in 2008, Bloomberg reported.


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