MTN Ghana, the largest telecommunications company in the country with 15.7 million subscribers, plans to list on the Ghana Stock Exchange (GSE) by June to offer local investors a share of its business.
The move is in fulfillment of the company’s 4G license agreement with the government of Ghana and the sector’s regulator, National Communications Authority.
“MTN Ghana is also moving forward with its localization, and we expect this process to be completed in the first half of 2018,” the company’s 2017 financial results report said.
In its 2017 financial statement, MTN stated that a key objective of listing on the GSE is to target a broad base of Ghanaian investors to share in the risks and rewards in ownership of its Ghana business.
As a result, the MTN Group board has approved a public offer through a listing on the Ghana Stock Exchange (GSE), subject to final approval by the GSE and Securities and Exchange Commission in Ghana.
In February, the GSE announced that MTN Ghana had submitted its prospectus to the Securities and Exchange Commission (SEC) and GSE to float 35 percent of its shares on the local bourse.
The listing of the mobile giant is expected to improve the GSE Composite Index, which is a major stock market index that tracks performance of all traded companies on the country’s bourse.
The financial report also discloses that: “MTN Nigeria continues to make good progress with the preparations for its listing on the Nigerian Stock Exchange (NSE)”.
It further noted that MTN Ghana continued to benefit from a positive macro-economic environment, and closed the year with a subscriber base of 15.7 million following the internal review of subscriber definitions.
This translated into a 24 percent increase in its 2017 performance as the company made GH¢3.4 billion.
Focused value propositions and improving NPS supported the good subscriber growth.
Strong growth in revenue, up by 23.3percent, was underpinned by data and digital revenue growth.
Data revenue increased by 50.6 percent, supported by re-pricing that was implemented in the second half.
The business reported active data subscribers of 6.5 million, which saw the digital revenue grow by 37.7 percent, with the number of active mobile money subscribers expanding by 25.7 percent to 7.1 million.
In the year under review, mobile money made up 13.6 percent of revenue.
The company also disclosed that it paid about one billion cedis in taxes to the government of Ghana, representing 3 percent of total tax collected in 2017.