GHANA: Deputy Minister lauds use of Mobile Money in IPO.

The Honourable Deputy Minister of Communication, Vincent Sowah Odotei, has lauded MTN Ghana's decision to use mobile money platform as a subscription channel for the Initial Public offer payments. He said the innovation is commendable as it supports government's financial inclusion agenda and the United Nation's Sustainable Development Goals (SDGs) 9 and 17 which describes fostering innovation and partnerships between governments and the private sector in the attainment of these goals.

 Mr Sowah made this statement at the listing of MTN Ghana on the Ghana Stock Exchange in the Cedi house building in Accra on Wednesday 5th September 2018.

He said "MTN Ghana continues to demonstrate the vision of leading the delivery of a bold digital world and its commitment to  the growth and development of the Ghanaian telecoms industry.  As a result of the innovation and flexibility introduced through mobile money platform, over 108,434 applicants representing 84.6 per cent of the total applicants subscribed through mobile  money". 

He described this as another historic moment within the global capital market and also a demonstration of high confidence in the Ghanaian economy and capital market by Ghanaians and investors. The performance, he said, is also an indication of investor confidence in MTN as a leading telecommunication company in the country.

Honourable Sowah added that Ghana has chosen a development path that is fully anchored in the principles of the SGDs and provides a platform for a Ghana Beyond Aid. This path, he said, requires innovations and cost effective solutions for the benefit of all Ghanaians.

He noted that government under His Excellency, Nana Addo Dankwah Akufo-Addo recognises the dynamism of the telecoms industry and  the enormous benefit of a digital economy to the Ghanaian citizenry and will therefore ensure that the required frameworks and incentives are put in place to encourage such steps.

MTN Ghana CEO, Mr Selorm Adadevoh, described the listing and first trading as a rare privilege and a historic moment. He said with the launch of the Initial Public Offer (IPO) on May 29th, 2018, MTN embarked on listing on the Ghana Stock Exchange as a preferred mechanism to meet the National Communication Authority's requirement for the 4G license.

"I am delighted to see that after nearly three years of hard work by all the relevant regulators, partners and our staff, we are now reaping the fruits of our labour". He made it known that MTN Ghana is the first telecom provider to list on the GSE.  He said that it has  the largest amount to be raised on the IPO on the GSE.

After listing, MTN Ghana will represent about 14 per cent of the market capitalization of the Ghana Stock Exchange. TheIPO is also the first to have  been subscribed to using Mobile Money and will accelerate financial inclusion in the capital markets in Ghana.

They succeeded in going beyond the minimum threshold of 10 per cent set by regulators at about GHC 347 million at a cost of 0.75 cedi per share. They achieved 1.15 billion representing 3.3 times the minimum amount required. Intensive marketing campaigns, he said, were used in all the ten regions to raise awareness for the offer and drive demand, make it affordable and inclusive for Ghanaians.

He disclosed that they had a total of 226,781 applications with 128,152 applicants out of  which 127,826 were Ghanaian representing 99.7 per cent. Of the total applications 85 per cent paid through mobile money.

Mr Adadevoh said MTN Ghana will continue to work hard to implement their strategy of brightening lives by providing, best customer experience and technology excellence and will continue to grow data and digital and digital services whilst touching the hearts and minds of Ghanaians.

Reverend Daniel Ogbarmey Tetteh, Director General of the Securities and Exchange Commission said the listing brings an end to the listing drought which GSE has witnessed since 2016. He urged other multinational companies to be motivated and follow suit to deepen the capital market. He lauded the share subscription through the mobile phone.

Present at the launch were Mr Kwaku Sekyi Addo; Mr Kofi Yamoah, Managing Director General of Securities and Exchange Commission, Mr Ashley Rix; President of the Ghana South Africa Business Chamber, Mr Kenneth Ashiegbey;CEO of the Telecoms Chamber, Executives of MTN Ghana, representatives of financial institutions and brokers, CEOs of various institutions and the media.

SOURCE:BUSINESSGHANA