MTN Group perfects plans for IPO in Nigeria

MTN Group has said it was perfecting the details of its proposed Nigeria Initial Public Offering (IPO) the News Agency of Nigeria reports.

MTN Group’s spokesperson, who pleaded anonymity, confirmed this in response to enquiries by NAN on why the company was yet to file applications for the proposed offer.

Both the Securities and Exchange Commission (SEC) and the Nigerian Stock Exchange (NSE) are yet to receive applications from the company for the offer.

The MTN representative said detailed process and work stream on the IPO were currently underway and would be announced at the appropriate time.

National Daily reports that IPO is process through which a private company or corporation raises investment capital by offering its stock to the public for the first time.

Speaking on the IPO process, the spokesperson said MTN had not made known the offer value contrary to the 500 million dollars being speculated in the media.

“To clarify some matters on the IPO process, no amount/value has been given by MTN Group or MTN Nigeria regarding the IPO and there was never a statement on a ‘proposed $500m IPO.’

“In the communication we have issued to the market, we have noted that we expected this IPO process to be concluded during 2018 and there was not a specific date given,” the representative said.

National Daily earlier report that MTN Group Ltd. was perfecting plans to raise about 500 million dollars from the sale of shares in its Nigerian business in the first half of 2018.

Standard Bank Group Ltd. and Citigroup Inc. had been advising the company on the disposal of as much as 30 per cent of the Lagos-based unit on the Nigerian Stock Exchange (NSE).

MTN had agreed to list the Nigerian unit as part of June 2016 agreement to pay one billion dollars fine for missing a deadline to disconnect unregistered subscribers amid a security crackdown.

MTN recently appointed a Nigerian investment firm, Chapel Hill Denham, as lead manager for the planned sale of 500 million dollars shares in its Nigerian business.

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It also appointed South Africa’s Rand Merchant Bank, Renaissance Capital and Vetiva Capital as joint issuers to the offer.

The telecoms firm also appointed seven placement agents that would help market the shares.