MTN Group is perfecting the details of its proposed Nigeria Initial Public Offering (IPO), according to the News Agency of Nigeria (NAN). An MTN Group spokesperson, who spoke anonymously, confirmed this in response to enquiries about why the company has yet to file applications for the proposed offer.

 

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The company is a major investor in key African subsea cable projects, such as EASSy—deployed along the east and south coast of Africa—and WACS—linking South Africa with the United Kingdom along the west coast of Africa.

Neither the Securities and Exchange Commission (SEC) nor the Nigerian Stock Exchange (NSE) have received applications from the company for the offer. The MTN representative said detailed process and work stream on the IPO were currently underway and would be announced at the appropriate time. The spokesperson said MTN had not made known an offer value contrary to the 500 million dollars being speculated in the media.

“To clarify some matters on the IPO process, no amount/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 expected this IPO process to be concluded during 2018 and there was not a specific date given,” the representative said.

There were reports earlier that MTN Group Ltd. was perfecting plans to raise about 500 million dollars from the sale of shares in its Nigerian business in the first half of 2018. Standard Bank Group Ltd. and Citigroup Inc. had been advising the company on the disposal of as much as 30 percent of the Lagos-based unit on the Nigerian Stock Exchange (NSE).

MTN had agreed to list the Nigerian unit as part of June 2016 agreement to pay one billion dollars fine for missing a deadline to disconnect unregistered subscribers amid a security crackdown. MTN recently appointed a Nigerian investment firm, Chapel Hill Denham, as lead manager for the planned sale of 500 million dollars shares in its Nigerian business. It also appointed South Africa’s Rand Merchant Bank, Renaissance Capital and Vetiva Capital as joint issuers to the offer. The telecoms firm also appointed seven placement agents that would help market the shares.