MTN Management confident IPO will be a success – Adadevoh

Chief Executive Officer of MTN Ghana, Selorm Adadevoh says the company is confident that the Initial Public Offering (IPO) would be successful.

Speaking to some section of the media on the progress of the IPO in Accra yesterday, he said the response from both institutional and retail investors so far was encouraging.

MTN Ghana, as part of measures to fulfilling its 4G license requirement, is transferring 35 per cent stake to Ghanaians through an initial public offering.

The Company seeks to raise GH¢3.47 billion at 0.75 cedis per share in the sale of over four billion ordinary shares to the public.

Mr Adadevoh would however not disclose how much had been raised so far, but says that management of MTN Ghana was excited about the public participation in the IPO.

He explained that it was against the regulatory requirements for the company to disclose figures on the IPO when it had not closed.

The IPO will close on July 31.

Mr Adadevoh said the innovation to allow investors, especially retail ones, to buy shares via their Mobile Money wallet was encouraging.

“Significant part of our shares is being bought through Mobile Money,” he said, indicating that “this brings the idea of how Mobile Money can support the Ghanaian economy.”

The Chief Finance Officer of MTN, Modupe Agbolade Kadri, explained that the revenues, which were being raised through the IPO would not be used to pay its medium-term loan of GHC500 million it took from Ecobank last December.      

“This IPO and equity transaction will not be used to pay off our medium term funding,” he said.

Source: GNA