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Africa's largest mobile phone firm, MTN, is planning to scrap its Nigerian IPO.

MTN CFO said the company may consider listing by introduction instead of the initial public offering due to current market conditions in Nigeria.

Africa's largest mobile phone firm, MTN, is planning to scrap its Nigerian IPO play Ralph Mupita and Rob Shuter, MTN Group executives (Soundplus)

Africa’s largest mobile-phone company, MTN Group Ltd, is considering scrapping its initial public offering (IPO) on the Nigerian Stock Exchange for other options.

Ralph Mupita, MTN Chief Financial Officer, in an interview in South Africa, said the firm is looking at other options of trading its shares on the Lagos bourse, Nigerian Stock Market, MyBroadband reports.

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The company's CFO said it may list by introduction instead of the initial public offering due to current market conditions.

The IPO type of listing has become challenging under current market conditions.

“We are exploring other options. The Nigerian business would not get a fair value under current market conditions. The simplest way to go forward would be an introduction on the Nigerian Stock Exchange,” MyBroadBand quoted Mupita as saying.

Mupita said the board of directors will make a final decision by the end of this year or first quarter of next year.

What is listing by introduction?

Listing by introduction is a way of listing shares of a company already in issue on another exchange.

The listing approval procedures for a new listing by introduction are the same as those for initial public offerings (IPO).

ALSO READ: All you need to know as Nigeria’s central bank and MTN go head-to-head in new forex saga

MTN is facing forex and tax tussles with Nigerian authorities

The South African company is currently battling sanctions from Nigeria's central bank and the Attorney General office over improper repatriation of forex and tax bills, amounting to $10.1 billion.

The sanctions plunged the firm's stock to its lowest although the Central Bank of Nigeria is now seeking equitable resolution.

MTN has filed a legal suit against the Nigerian authorities and it is expecting a legal protection for its Nigerian asset.

Also from Business Insider Sub-Sahara Africa:

https://www.pulse.com.gh/bi/tech/mtn-is-planning-to-scrap-its-nigerian-ipo-id8926482.html

AlbertaU Posted on October 02, 2018 11:10

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