MTN shifts gears to sell Nigeria shares before IPO

● MTN Group has appointed more banks for the sale of shares in its Nigerian unit on the stock exchange in Lagos as it looks to start an initial public offering in June or July, say people familiar with the matter.

The Johannesburg-based wireless operator, Africa’s largest by sal es, has picked several banks and brokers, including Renaissance Capital, FirstRand’s Rand Merchant Bank and Nigerian firm Chapel Hill Denham to work with global coordinators Citigroup and Standard Bank Group, say the sources, who asked not to be named.

The company met its bankers on Wednesday and held a presentation about MTN Nigeria in Lagos for foreign and local analysts on Friday, they say.

MTN is yet to decide what portion of the subsidiary to sell, they said. It may aim to raise about $400-million (about R4.9billion), or roughly 10% of the stock, two of the sources say.

An MTN spokesman declined to comment. The company agreed to the listing in June 2016 as part of a $1-billion fine for missing a deadline to disconnect unregistered subscribers amid a security crackdown by Nigerian authorities. The penalty, originally set at $5.2-billion, led to the resignation of MTN’s then CEO, a first-ever full-year loss and a slump in the share price that’s yet to be clawed back.

MTN Nigeria has 52 million subscribers and generated R36-billion revenue in 2017, according to MTN’s financial statements. It made earnings before interest, taxes, depreciation and amortisation of R14-billion. Rob Shuter, MTN’s CEO, said in an interview this month that he expected the IPO to be finalised by the end of the year.

MTN is also selling shares in its Ghana unit, which has 19 million subscribers, in the capital, Accra.

It may list a 35% stake there for almost $800-million, people familiar with the matter said in March.

Company held a presentation for foreign and local analysts in Lagos