Facts are gradually emerging as to what MTN is looking to get out of its planned initial public offering, IPO in Nigeria. Sources who spoke to Bloomberg said the company might target USD1 billion in the IPO.
According to the speculation, “Minority shareholders may sell down their holdings or exit entirely, while MTN may offer a small portion of its stake in the business”.
MTN has not announced any finite details on its planned IPO. Nigeria is MTN’s biggest money spinner, accounting for more than a third of its sales and profit for a company that has a market value on the Johannesburg bourse of 220 billion rand ($15 billion).
Nigeria’s economic slump deepened in the second quarter as a declining oil industry weighed on output, with gross domestic product in Africa’s most populous country contracting by 2.1 percent from a year earlier, after shrinking 0.4 percent in the first quarter.
The Nigerian Stock Exchange All Share Index has slumped 7 percent over the past year as a currency peg that lasted about 16 months deterred foreign investors, weighed on growth and led to a lack of dollars, curbing imports and causing shortages from fuel to industrial materials.
MTN had in July, announced the appointment of Stanbic IBTC Capital, Citigroup Inc. and Standard Bank Group Ltd as its advisers on the transaction.