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Business News of Friday, 31 August 2018

Source: BBC.com

MTN raises GH¢ 1.146 bn from IPO

MTN has raised a total of 1.146 billion cedis from its Initial Public Offering (IPO).

The amount realized from the IPO shows that MTN fell short of its target of 3.47 billion cedis by about 2.3 billion cedis.

The telecom company, however, says the performance is highly commendable considering the volume of the offer.

The company says it is hoping to expand its operations and give value for money to the investing public.

A total of 128, 152 applicants bought into the shares.

This is made up of 127, 653 retail investors and 499 institutional investors.

MTN is expected to list the proceeds of the bourse on the Ghana Stock Exchange next week Wednesday, September 5, 2018.

This is also expected to boost activities on the local bourse.

Although not all shares offered were bought into by investors, the company tells Citi Business News the remainder will be traded on the secondary market.

Some investors who purchased the shares are yet to reconcile their information with the Central Securities Depository.

But the CEO of MTN, Selorm Adadevoh explained that they will work to attract all such persons onboard.

The Initial Public Offering is targeted at opening up thirty-five percent of MTN’s operations to the general public.

It also formed part of regulatory requirements following the purchase of one of the 4G spectrum in 2015.