According to pre-IPO presentation seen by Reuters, the MTN Group is planning to list its Nigerian unit worth $5.23bn by July in a debut Initial Public Offer on the Nigeria Stock Exchange and will raise new funds to trim down debt.
MTN aim is to raise at least $400m from the IPO to pay preference shareholders and is preparing to file application to the Securities and Exchange Commission to begin the offer after getting approvals from existing investors last week.
A road show has been planned between May and June 2018 by Nigeria’s biggest telecoms operator.
Nigeria’s biggest telecoms operator has around 402 million shares in issue, the same amount in preference shares, which it sold at $0.99 in 2007.
As part of the IPO it’d split one share into 50 units, to create 20 billion shares, which would be listed on the bourse and set the IPO price through book building.
MTN shares are right now being traded over-the-counter in Nigeria at $13, giving it a market value of $5.23bn, down from $25bn in 2015 before a Nigerian government fine, sources said.
The company plans to use the proceeds of the share sale to redeem preference shares issued to existing investors who bought the shares in 2007 and also cut its dollar exposure.