MTN Ghana to Appoint IC Securities as Sponsor for IPO

Updated on
  • Mobile-phone company in process to finalize sale documents
  • MTN preparing to raise $447 million in offering 35% of shares

MTN Group Ltd.’s Ghanaian unit appointed local brokerage IC Securities Ghana Ltd. as its main sponsor for an upcoming initial public offering in the West African nation, according to five people familiar with the matter.

Africa’s biggest mobile-phone company by subscribers is preparing to raise as much as 2 billion cedis ($447 million) through listing 35 percent of the subsidiary on the Ghana Stock Exchange in what will be the largest share sale in the country’s history. The sale will help MTN meet conditions agreed to in 2015 when it acquired the right to use spectrum that can carry high-speed mobile data for customers.

MTN and the Securities and Exchange Commission, the market regulator, are still in talks to finalize the sale’s prospectus, said two of the people, who asked not to be identified because a public announcement hasn’t been made. MTN is expected to submit a final draft within two weeks, they said.

IC Securities Managing Director Kwabena Osei-Boateng didn’t respond to emailed questions and wasn’t immediately available to take a call for comment. Pala Asiedu-Ofori, senior manager for MTN Ghana’s corporate services office, declined to comment to a text message.

MTN was granted a 15-year license for fourth-generation spectrum on condition
that Ghanaian investors own 35 percent of the business.

IC Securities was the main sponsor for an initial public offering by Agricultural Development Bank Ghana which raised 326 million cedis in December 2016.

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