MTN prepares for Nigerian IPO worth $500 million
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 offer.
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 given.”
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 shares.
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.