MTC shares now up for grabs
21 September 2021 | Business
MTC this week kicked off its listing process, selling shares to members of the public for N$8.50 for a minimum of 200 shares.
Shares will be on offer to the public until 1 November, while the company anticipates officially listing on the Namibia Stock Exchange on 19 November, making it the first public entity to partially list.
Making a case for why it was a good investment in a prospectus published, MTC said it was an advanced company preparing to broaden its Namibian ownership.
It added that it had no gearing and was a cash generative, with stable earnings and strong shareholder returns.
“All capital investments are currently funded from operational cash and no external funding is required. However, MTC is investigating feasible and value-enhancing gearing solutions, which will support the long-term strategy of the company,” the telecommunications giangt said.
The company also boasts a 90% mobile share in the telecommunications market, extensive transmission and distribution networks as well as a 97% population coverage.
“MTC remains at the forefront of technology, enabling it to continue gaining market share and penetration. By having the most 2G, 3G and 4G sites in Namibia and our population coverage density, MTC is able to service 97% of Namibians,” it said.
On the shareholder front, it said it intends to pay out significantly to shareholders.
“It is MTC’s current policy to pay dividends up to a minimum of 70% of the net profit after tax annually, subject to the available cash resources and the need to fund growth opportunities,” the company said.
MTC has a strong dividend pay-out profile with an average of 75% of net profit paid out between 2016 and 2020, totalling N$2.7 billion.
The company recently recruited 100 people who will assist with its initial public offering.
MTC intends to raise between N$3 billion and N$3.5 billion, with 49% shareholding to be sold off.