MTN Ghana has reportedly raised the value of its initial public offering, IPO, to about $787 million.
According to people with knowledge of the matter who were no named by Bloomberg, the increment was as a result of a new round of valuation that was carried out.
MTN Ghana is now said to be valued at $2.2 billion which according to sources is the 35 per cent stake of the company.
It would be recalled that South African MTN Group agreed to list 35 per cent stake in its Ghanaian unit when it was acquiring a 3G Internet licence from the Ghanaian government.
Should the new IPO value comes out to be the fact, it will become the largest listing on the Ghana Stock Exchange, GSE.
Neither MTN Group nor its Ghanaian unit has commented on the matter, but people with the knowledge of the matter claimed that the company has submitted the details to Ghana’s financial regulator for regulatory approvals.
Nevertheless, it is a fact that MTN Group has its job cut out. Africa’s largest mobile carrier by subscriber base is also working on filings for its Nigerian IPO which value its Nigerian unit at $5.5 billion, a figure that shows the company is more twice bigger than its Ghanaian unit.
The Nigerian IPO was also part of a horse trading arrangement reached to lower MTN Nigeria’s fine to about N330 billion in 2016. While the fine led to its first full year loss in over 20 years in 2016, the he company has fully recovered posting full year profit for the year 2017.
