PSG Wealth Management Namibia and IJG Securities are in for a N$21 million payday for work done on the Mobile Telecommunications Limited (MTC) Initial Public Offering.
IJG CEO Mark Spath confirmed the payment for the role played by the two companies prior to the listing of MTC on the Namibian Stock Exchange (NSX).
“As two appointed co-sponsors will get the full amount if we raise the target amount and if we don’t, we will be paid out a smaller fee,” he said.
“We have done a lot of this work at risk. If the listing is successful, we get paid, if partially successful we only get paid for that partial successfulness.”
He said a partial payment has already been paid last year, which will be offset by the final payment to be made when the listing process is complete.
“There a smaller portion which was paid out to us as part of that N$21 million, which will be deducted from that amount we get paid. It was very small and it was just before lockdown last year,” Spath said.
Quizzed if the MTC Initial Public Offering will be overscribed, he said, “Look we 80% there already because of the pre-commitments that we have done, so as it currently stands, we need to raise an additional N$732 million and then we would have managed to sell 49%.”
Selected Namibian institutional investors have provided pre-commitments to subscribe to a minimum of 282,899,160 shares worth N$2,4 billion, at a listing price of N$8.50.
“That’s a target and I would like to think we will achieve it and hopefully we will be over subscribed.”
On concerns over MTC’s growth prospects when listed, with mobile penetration in the country at 112% and it having a dominant 90% market share, with 2,469 active sims on the its network the IJG MD said, “This is where management has to prove themselves. They, the board together with management believe that they have a strategy in place for them to achieve that. The bottom line is management will have to prove themselves.”
Application for the telecoms company shares is currently on-going and is set to close on the 1st of November 2021.
Government through the Namibia Post and Telecommunications Holdings Limited (NPTH) is currently the majority shareholder in the business.
