South Africa’s MTN Group said its local unit in Ghana, MTN Ghana, was only abkle to raise $238.5 million through an initial public offering, IPO.
While the IPO missed the target set by Affrica’s largest mobile carrier, it is still the largest of its kind in the West African country
According to its filings for the IPO, MTN Ghana had planned raise 3.47 billion cedis from selling about 4.63 billion shares representing up to 35 percent of the issued shares of MTN Ghana at 0.75 cedis per share.
A statement by the company’s investor relations desk shows that MTN only sold 1.53 billion shares.
MTN’s Group said its stake in MTN Ghana will be 85.40 percent. This is a stark difference to the 30% stake it had planned to sell to local investors.
MTN is looking at listing in Nigeria, Africa’s largest economy but might shelve the plan as the company has been ordered to return $8.1 billion it repatriated to South Africa.
The Central Bank of Nigeria had since Thursday fined four local lenders who facilitated the transfer for their contravention of capital importation laws of the country.