Scancom PLC (MTN Ghana) has set another ground-breaking record for being the first telecommunication company to be listed on the Ghana Stock Exchange.
This listing will positively impact the Ghana Stock Exchange by significantly increasing its market capitalization by over GH ¢ 9.22billion from GH ¢ 55.97 to GH65.19b (16.4%). And also, improve liquidity on market.
Speaking at the event, the Deputy Managing Director of Ghana Stock Exchange Mr. Ekow Afedzie, noted that the listing is the largest IPO amount raised on the Exchange in its 28 years history.This he said, over GH¢ 1billion raised.
According to him, Ghana will be counted among the list of African countries that MTN is listed on their market.
“For us at the Exchange, we are delighted again to see such companies raise capital and list because investment in viable businesses like MTN lead to wealth creation for Ghanaians as well as:
•More job opportunities for our youth;
•Contribute greater taxes and more social projects to Ghanaian communities;
•Share their fortunes and risks with their shareholders including Ghanaians.
•This is where a capital market in a developing economy as Ghana’s must
lead us to. That is why we will continue to engage the private sector to use
The Exchange in its strategic plan for the medium term will among other
Facilitate the development of Ghana as a financial hub in Africa aspart of the Government’s Agenda.
Develop policies to make GSE an alternative investment destination for issuers and investors and thereby contribute significantly towards the development of the economy,” he stated.
The Chief Executive Officer (CEO) of MTN Ghana, Mr. Selorm Adadevoh, described the occasion the biggest achievement of MTN Ghana so far.
This he said, company since its establishment in the Ghanaian market has always been on a consistent winning spree the result of the great collaboration they have enjoyed from all the people who have an interest in their business.
And MTN today has the largest Ghanaian Shareholder base on the GSE.
This is the 1st IPO in the world to use Mobile Money as a medium to subscribe shares.
This demonstrates another use case for Mobile Money and will accelerate financial inclusion in
the capital markets of Ghana, for many people in this country who would not ordinarily have access to the capital markets. This shows that they trust our system and services.
On May 29, 2018 MTN Ghana launched their Initial Public Offer in Accra with subsequent launches across all the regional capitals of Ghana. They embarked on listing on the Ghana Stock Exchange as the preferred mechanism to meet the NCA’s requirement for the 4G license.
Listing on the GSE gave all Ghanaians, both institutional and individuals, an
opportunity to participate in the ownership of Ghana’s No.1 network.
Considering the value of business, their Regulators approved a minimum threshold required for the Offer to be declared successful.
The minimum success threshold was 10% of the offer which is about GHS 347 million. MTN Ghana exceeded the threshold and the final allotment was approved by the SEC on 29 August 2018. This made MTN to be the 1st telecoms provider in Ghana to be listed on the Stock Exchange.
By: Isaac Kofi Dzokpo/newsghana.com.gh