MTN was able to raise only GH¢1.15billion out of the expected GH¢3.48billion from its Initial Public Offering which la

[answerhappygod]

MTN was able to raise only GH¢1.15billion out of the expected GH¢3.48billion from its Initial

Public Offering which lasted from May 29, 2018 to July 31, 2018. Even though the share sale

exceeded the minimum of GH¢348million or 10 percent of the total required for the offer to be

declared successful, it still represented only 32.97 percent of the offer. The IPO was promoted

using multiple channels as well as other means of purchase – MoMo, digital and other means of

transaction in addition to market storms and engagements with stakeholder groups across the

board. This transaction has enabled Ghanaians from all walks of life to own a share in one of

Ghana’s largest, most visible and respected companies. As it stands, MTN appears to be the

company with the largest number of Ghanaian shareholders among all listed companies on the

GSE. Also, the result of the IPO was reported to have been double the size of all IPOs put together

in the history of the Ghana Stock exchange. This feast would not have been achieved without the

company meeting certain requirements.

Required:

Assuming you were the consultant(s) to MTN on discussions leading to going public by MTN

Ghana. Write a brief report detailing the economic role(s) of the Ghana Stock Exchange to the

Ghanaian economy. (5 Marks)