MTN Ghana has gone public by selling shares and being listed on the stock market.
The telecommunication giant has not indicated its intended target, but media speculate it could be over US$745m.
Till the end of July, MTN Ghana is offering 4.64 billion shares at 75 pesewas each, representing 35% of its value.
Transferring part ownership of the company to Ghanaians was a regulatory requirement for the company to secure a 4G license for 800MHz spectrum in 2015.
On 20 April MTN received the regulators’ approval to go ahead with the IPO and the company will work with the Securities and Exchange Commission (SEC), Ghana Stock Exchange (GSE) and the Ghana Investment Promotion Council (GIPC) ahead of the official IPO launch.
The IPO is a major step towards listing MTN Ghana on the GSE and if successful, industry experts believe this could be achieved as early as June 2018.
It is time for you to invest in the number one telco in Ghana. Investments are a major way of increasing your income and securing your future– buy MTN Ghana shares. Before we dive into how to buy MTN Ghana shares, lets look at some benefits of buying shares (according to AMP Capital)
1. Capital gains over the long-term
Historically, equities have provided some of the strongest after-tax investment returns over the long-term. By owning equity in companies with growth potential, investors have the opportunity to beneﬁt from capital gains as the asset grows in value over time. Investors enjoy unlimited participation in the earnings of the ﬁrm. Of course, investors cannot expect the company to pay out all its proﬁts in a form of a dividend as this may come at the risk of future proﬁtability and a lower share price.
2. A good source of income
The dividend yield on equities is another important source of return. Unlike term deposits, dividends from equities can have inﬂation built into earnings where companies are able to pass cost increases onto customers.
3. Highly liquid
Equities are traded on major stock markets around the world. They are highly liquid which means that they can be converted into cash quickly and with minimal impact to the price received. Unlike direct investments, there is relative ease in the transfer of ownership and the movement of equities.
4. Tax advantages
The after-tax performance of equities is lifted by dividend imputation, a tax beneﬁt not shared by other asset classes. The dividend imputation system allows investors who have been paid a dividend to take a personal tax credit (franking credit) since the company has already paid tax on the dividend.
5. Corporate control
Equities come with certain rights including the voting rights to which the investors are entitled. The level of corporate control depends on whether the equity is classed as ‘ordinary’ or ‘preferred’ and on the size of your shareholding.
Ordinary shares represent the majority of shares held by investors. When you own an ordinary share of a company, you usually have one vote per share that entitles you to participate in the election of the board of directors.
Despite their name, preference shares have fewer rights than ordinary shares, except in one important area – dividends. Companies that issue preference shares usually aim to pay consistent dividends and preference shareholders have ﬁrst call on dividends. In the event that a company is liquidated, preference shareholders have prior claim to assets over ordinary shareholders. This feature allows the company to raise capital from venture capitalists before it goes public because most venture capital deals are structured as preference shares.
What you should know about MTN Ghana shares
- The shares are opwn from 29th May to 31st July, 2018
- Buy your MTN Ghana share at 75p/share
- Shares must be bought in multiples of ten with a minimum purchase of GHC7.50
To buy MTN Ghana shares…
Through mobile money
1. Dial *170#
2. Select option 7
3. If you are sure you have gone through the prospectus on mtnghanashares.com, select “Yes”
4. Select option 1 to buy new shares
5. Enter the number of shares you want to buy.
You can visit selected MTN branches, mtnghanashares.com and selected banks. You can watch this video for more info.
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