MTN launched a mobile money-based Initial Public Offering in Ghana.
It is the first time shares of a major corporation can be purchased using mobile money accounts. Ghanaians will be able to buy shares using Momo Wallet, MTN’s local mobile money platform with 6.2 million users.
With this, MTN Ghana hopes to raise about $743 million at 0.75 cedis per share, in what is expected to be the West African country’s largest IPO.
The group is required to float shares on the local stock exchange under an agreement with Ghanaian authorities for access to 4G spectrum licence in the 800MHz band, which was granted to it in late 2015. In terms of that deal, MTN must sell up to 35% of its shares.
MTN, which is headquartered in Johannesburg, South Africa has over 230 million customers across Africa with a market cap of $17.8 billion. Across the borders, MTN Nigeria is also looking forward to raising the sum of $500 million, disposing of about 30% stake in the business by getting listed on the Nigerian Stock Exchange (NSE).