South Africa’s MTN Group has hired more banks for the initial public offering (IPO) of its Nigerian unit, which is expected to take place in June or July, Bloomberg reports, citing people familiar with the matter. According to the unnamed sources, the banks include Renaissance Capital, Rand Merchant Bank and Nigerian firm Chapel Hill Denham, which will work with global coordinators Citigroup and Standard Bank Group. The sources added that MTN is yet to decide what portion of the unit to sell, although it may aim to raise about USD400 million.
MTN Nigeria revealed in July 2016 that it planned to list its shares on the Nigerian Stock Exchange (NSE), subject to suitable market conditions. The planned IPO forms part of a settlement arrangement with the Nigerian government regarding a NGN330 billion (USD913 million) fine handed to the country’s largest cellco by subscribers in October 2015 for missing a deadline to disconnect around 5.1 million incompletely registered SIM cards.