MTN May List Nigerian Arm In July, To Cut Debt With $5.2bn IPO

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Telecommunications giant- MTN plans to list its Nigerian unit worth $5.23bn by July in a debut Initial Public Offering (IPO) on the Nigerian Stock Exchange (NSE), just as it will raise fresh funds to reduce debt, according to pre-IPO presentation seen by Reuters.
The listing of up to 20bn shares of MTN through a split of an existing unit into 50 units, is believed to be part of an agreement reached following the sanctions by the industry regulator- the Nigerian Communications Commission (NCC).

MTN Nigeria, which is 70% owned by South African parent company, aims to raise at least $400 million from the IPO to pay preference shareholders and is preparing to file application to the Securities and Exchange Commission (SEC) to launch the offer after getting approvals from existing investors last week, sources with knowledge of the matter said.

Ahead of this, a roadshow is planned for between May and June this year, while listing on Nigeria’s bourse is slated for between June and July, following which professional parties to the offer are to be appointed.
MTN Nigeria has around 402 million shares in issue, the same amount in preference shares, which it sold at $0.99 in 2007.
The IPO price is expected to be via book building.

MTN shares are currently traded over-the-counter in Nigeria at $13, giving it a market value of $5.23 billion, down from $25bn in 2015 before a Nigerian government fine, according to sources.
The company 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.

MTN wants to achieve a “retail friendly” offer price for the IPO, it said in the pre-IPO document, of around 80 naira per share, the average price for shares listed on Nigeria’s bourse.
In 2016 the telecom firm said it would list its local unit on the Nigerian Stock Exchange, in a settlement with the Nigerian government over unregistered SIM cards that cost it $1.7 billion fine.
Citigroup and Stanbic IBTC Bank is advising MTN Nigeria.

 http://investdata.com.ng/2018/02/mtn-may-list-nigerian-arm-july-cut-debt-5-2bn-ipo/#more

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