MTN considering IPO for Nigerian arm, reports claim
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MTN considering IPO for Nigerian arm, reports claim

MTN is looking at options to list its Nigerian unit as part of a $5.2 billion IPO, according to reports.

Reuters claims to have seen a pre-IPO presentation that will see MTN launch a debut initial public offering on the Lagos bourse in the hope of raising at least $400 million inf funds which will help the telco reduce debt.

MTN gained approval from shareholders last week, the report claims, and is now preparing a file application to the Securities and Exchange Commission to launch the IPO. The funds will then be used to pay preference shareholders.

The Nigerian arm of MTN is the biggest operator in the African country. In its Q2 2017 results, it had 53 million subscribers in Nigeria, making it MTN’s biggest market. In terms of revenue, it made 18bn Rand in the first half of 2017 in Nigeria, down 37% on the previous year.

MTN would use the proceeds of the share sale to redeem preference shares issued to existing investors who bought the shares 11-years ago and also cut its dollar exposure, Reuters said, although MTN declined to comment on the report.

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