MTN prepares for IPO in Nigeria

The South African multinational MTN has announced its intention to proceed with an IPO of its Nigerian subsidiary before the end of the current year.

MTN has already named a Nigerian investment company, Chapel Hill Denham, as the lead company for the IPO. Also, Rand Merchant Bank of South Africa, the global firm Renaissance Capital and Nigeria Vetiva Capital were chosen as joint issuers. The telecom giant has also appointed seven placement agents who will help market the offer.

Technically, the group seeks to register its Nigerian subsidiary worth $ 5.23 billion by July 2018 and raise funds to reduce its debt. It plans to raise at least $ 400 million from the IPO to pay the preferred shareholders and make a roadshow between May and June.

The company also works with Stanbic IBTC Capital, Standard Bank of South Africa, Standard Advisory London and Citigroup Global Markets as joint advisers and global coordinators, with Stanbic as the lead issuer.

Currently listed on the Johannesburg Stock Exchange, the mobile giant, has promised to make a secondary listing in Nigeria under a settlement of the fine of 330 billion naira ($ 833 million) with the Federal Government of Nigeria. Regulation following its condemnation by the Nigerian Communications Commission in October 2015 for failing to respect the deadline for disconnection of 5.1 million unregistered SIM cards in the West African country. Fine which had been heavily negotiated.

The group is also considering Nigeria to register in Ghana this year. MTN will offer a 35% public stake in the Ghanaian company.

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