MTN Nigeria confirms its $400 million IPO for July

MTN Nigeria confirms its $400 million IPO for July

MTN Nigeria, the country’s largest mobile carrier has confirmed it will raise about $400 million from its Nigerian initial public offering, IPO in July.

The IPO which puts the Nigerian unit value at about $5.23 billion will see the company raising funds on the Nigerian Stock Exchange, NSE to pay its huge pile of debt as well as paying its preference shareholders.

MTN has not commented on finite details of the IPO, however, the actual date for the IPO has now been confirmed for July in a market that will see the company as the only mobile carrier listed on the market.

The company said it wants to achieve a “retail friendly” offer price for the IPO, it said in the pre-IPO document, of around 80 naira per share, the average price for shares listed on Nigeria’s bourse.

And it would split its nominal value to 2 kobo from one naira. South Africa’s MTN owns more than 70 percent of MTN Nigeria, which has under 300 existing shareholders.

MTN said it plans to execute a roadshow between May and June 2018, according to the presentation and list on Nigeria’s bourse between June and July. It will now need to appoint professional parties to the offer.

MTN Nigeria has around 402 million shares in issue, the same amount in preference shares, which it sold at $0.99 in 2007.

Also, as part of the IPO it would split one share into 50 units, to create 20 billion shares, which would be listed on the bourse and set the IPO price via book building.