MTN Nigeria targets $1 billion in its IPO

Africa’s largest operator by sales, MTN is seeking to raise about $1 billion in an initial public offering, a condition tied to the settlement of a record fine imposed by Nigeria’s telecom regulator, reports Fin24, citing people familiar with the matter.

According to the report, minority shareholders may sell down their holdings or exit entirely, while MTN may offer a small portion of its stake in the business, citing an unnamed source.

The IPO is said to be part of a deal struck with the Nigerian government to pay a 330 billion naira ($1 billion) penalty for missing a deadline to disconnect unregistered subscribers — with negotiations over the fine having contributed to a 38% decline in MTN’s share price since it became public in October.

The company which currently has a market value of $15 billion reports that a third of its sales and profit comes from the West African country.

[via: Fin24]

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