Mobile Telecommunications Limited (MTC) is expected to announce the results of its Initial Public Offering (IPO) tomorrow (Wednesday) ahead of the company’s listing on Friday.
The results of the IPO, which closed at the beginning of the month, will reveal how much prospective shareholders of the mobile company have been allocated against their applications, with refunds also being made to unsuccessful applicants, mainly as a result of mistakes in filling their application forms.
Information gathered by The Brief shows that depending on the subscription rate of the IPO, institutional investors could be allocated the entire 80% of MTC shares pre-committed prior to the IPO worth N$2,4 billion, at a listing price of N$8.50.
If allocated in full, only 83.6 million shares valued at N$710.6 million will be left for allocation to members of the public.
With 367.5 million shares having been put on offer, equal to a 49% stake, the government through the Namibia Post and Telecommunications Holdings Limited (NPTH) is expecting to raise N$3,123,750,000 from the IPO.
The government has already hinted at the possibility of using 50% of proceeds from the IPO as seed capital to kick start the much-anticipated Sovereign Wealth Fund (SWF), dubbed the Welwitschia Fund.
The SWF is expected to be operational before the end of the year according to an announcement by Finance minister, Iipumbu Shiimi.
In October, Shiimi indicated that funding for the SWF will also come from savings, proceeds from the green renewable sector, mining royalties, fishing quotas, divestiture of state-owned enterprises as well as Southern African Customs Union receipts.
