MTC valued at N$8 billion
29 January 2021 | Business
The planned listing of public entity MTC is set to unlock great value for comment, according to economist Klaus Schade, who placed its valuation upwards of N$8 billion.
He made the remarks following confirmation that the telecommunications company intends to list on the Namibia Stock Exchange (NSX) in 2022. Government had in 2016 first announced its intention to list a portion of MTC on the NSX.
“The valuation of MTC is estimated at N$8 billion or more. The revenue that can be generated from the listing depends on the final valuation and on the shareholding government intends to retain in MTC,” Shade said.
According to its balance sheet, MTC’s assets are valued at N$3.2 billion. Its board declared dividends of N$977.8 million, comprising an ordinary dividend of N$211 million, a special dividend of N$400 million paid in December 2019, and an ordinary dividend of N$366.8 million, paid in June 2020.
This will make MTC the first public entity to be listed, following the footsteps of South African counterpart Telkom, which had also previously been listed on the Johannesburg Stock Exchange by that government in 2003.
Schade said revenue gains from MTC’s listing could help government build and maintain infrastructure.
“The funds could be used to finance investment into social infrastructure such as health and educational facilities and the connection to water, sanitation, electricity and internet, as well as servicing land for residential purposes and the expansion of bulk infrastructure to informal settlements,” he said.
The telecommunications giant’s listing could also lend a helping hand to government’s existing income streams, Schade added.
“The listing of MTC would provide the government with substantial revenue during a time of suppressed revenue from other sources,” he said.
MTC’s listing has previously also drawn the interest of the Government Institutions Pension Fund, which fancied gobbling up a significant portion itself.