- SEC Begins Talks With MTN Group on $500m Public Offer
The Securities and Exchange Commission (SEC) yesterday confirmed that MTN Group had commenced discussions with it on its proposed $500 million Initial Public Offering (IPO).
A senior management official of SEC who pleaded anonymity said MTN had commenced discussion with the commission on the IPO.
Nigeria is the largest of the telco’s 22 markets across Africa and the Middle East.
The source said although talks were ongoing, the telco was yet to formally file its application for the IPO.
According to the News Agency of Nigeria (NAN), the source reiterated SEC’s commitment to investors’ protection, and that their interest would be protected in the ongoing discussion, adding that SEC would remain committed to the development of the nation’s capital market and listing of more multinationals.
Another source at the Nigerian Stock Exchange (NSE), who declined to be mentioned, also said the NSE had not yet received an official filing from the company.
“We are progressing very well with the Nigerian listing and if market conditions are appropriate, we will conclude that by the end of the year,” MTN Group CEO, Rob Shuter, said in an interview in Lagos. He declined to provide more details on the process.
There were reports recently that MTN Group Ltd. was perfecting plans to raise about $500 million from the sale of shares in its Nigerian business in the first half of this year.
Standard Bank Group Ltd. and Citigroup Inc. had been advising MTN on the disposal of as much as 30 per cent of its Nigerian unit on the NSE.
MTN had agreed to list the Nigerian unit as part of the June 2016 agreement it entered into with the Nigerian Communications Commission (NCC) to resolve the humongous $5.2 billion (later reduced to $1billion) fine for missing a deadline to disconnect unregistered subscribers amid a security crackdown.