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MTC Namibia unveils IPO plans

Namibia , 28 May 2019

MTC Namibia unveils IPO plans

Major telecoms operator MTC Namibia has initiated its plan to officially list on the Namibia Stock Exchange (NSX).

Company spokesperson Tim Ekandjo confirmed the process is expected to be completed within 15 months and will pave the way for the listing of MTC on the local bourse in March 2020.

"We plan to submit the application for registration to the Namibian Stock Exchange (NSX) in February 2020 and announce the opening date of the public offering in March 2020. The closing of the public offering is expected to take place in June 2020. We are officially planning to register on the NSX by July 2020, based on regulatory approvals," said Ekandjo.

The operator has appointed IJG Securities and PSG Wealth Management as sponsor brokers for the listing project.

Listing on the stock exchange is expected to increase operational efficiency, transparency and operational visibility, as well as improve its liquidity, according to the company.

This announcement was made a year after MTC Namibia's acting CEO Thinus Smit revealed the company will float 49% of its shares on the NSX of which 29% will be offered to the general public.

The shares were initially expected to be available by the end of the second quarter of 2018,

Speaking in Windhoek at the official launch of consumer engagement platform MTC Interact, Smit said the public will be able to buy the shares via an IPO in the secondary market.

MTC Namibia was a wholly-owned government venture, but this status changed when Samba Luxco, a Luxembourg-based firm, acquired 34% stake. The remaining 66% is owned by the government through the Namibia Post and Telecommunications Holdings.

Given the latest development and the company's intention to go public, the government continues to seek ways to buy back the 34% stake it sold.

MTC is Namibia's biggest operator with over 2.5 million subscribers. Established in 1994, it enjoyed monopoly in the market prior to the entrance of competitors.

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