MTN Zambia set to IPO after long delay

MTN Zambia is reported to now have plans to list on the Lusaka Stock Exchange (LuSE) in order to comply with its local licence conditions.

The move follows fears that the country’s regulator, the Zambia Information and Communication Technology Authority (ZICTA) might impose sanctions on the company for failing to comply with the regulation.

ZICTA regulation compels foreign-owned telecom companies to have at least 10 per cent of shares held by Zambians through the stock exchange.

MTN is, to date, the only foreign owned mobile phone operator.

In 2009, MTN said it was set to finalise the issuance of the shares through a private placement arrangement in the first quarter of 2010.

MTN Zambia currently enjoys a 51.4 per cent market share, counting 10.5 million mobile subscribers, followed by Airtel Zambia and government-owned Zambia Telecommunications Company (Zamtel).