29 May 2018
| Natalie Bannerman
MTN Group is setting out the details of its proposed Nigeria Initial Public Offering (IPO) for a speculated $500 million.
According to the News Agency of Nigeria (NAN) the details of
the IPO are still being agreed on which is why the company has
yet to file applications for the proposed offer. Both the
Securities and Exchange Commission (SEC) and the Nigerian Stock
Exchange (NSE) have yet to receive applications on the
A MTN Group spokesperson who asked to remain anonymous said:
"To clarify some matters on the IPO process, no amount or value
has been given by MTN Group or MTN Nigeria regarding the IPO
and there was never a statement on a 'proposed $500m
IPO.’ In the communication we have issued to the
market, we have noted that we expect this IPO process to be
concluded during 2018 and there was not a specific date
The decision to list the Nigerian arm of MTN Group came as
part of the $1 billion fine it was ordered to pay in 2016 for
missing a deadline to disconnect unregistered subscribers, as
part of a wider security crackdown.
Standard Bank and Citigroup are advising the company on the
selling of as much as 30% of the Lagos-based unit on the NSE.
NAN also reports that it appointed Chapel Hill Denham, the
Nigerian investment firm, as lead manager for the IPO. In
addition South Africa’s Rand Merchant Bank,
Renaissance Capital and Vetiva Capital as joint issuers to the
offer, as well as seven placement agents that will market the
Back in March, MTN first started looking at options to list the
Nigerian arm of its business as part of a larger $5.2 billon
IPO. At the time the company was hoping to raise at least
$400 million in funds to help reduce its telco debt.
Securities and Exchange Commission,
Nigerian Stock Exchange