The MTN board members have asked your boss several questions and he has asked that you provide answers to these so he can prepare a presentation deck for the board meeting. a. What reasons would you offer to the board to convince them that the IPO would be beneficial to MTN Ghana? (2 marks) ii) In what three ways will the IPO cost MTN. Which of these costs were direct and indirect in nature? (3 marks) iii) What is a lock-up period, and why do you thinkht is important for MTN Ghana to notify employees about a potential lock-up period? (2 marks) b. Given the implied market price IC Securities used in determining the total amount of funds to be raised, what would MTN's market to book value for 2017 be? (2.5 marks) ii) What information does this ratio relay about investor sentiments concerning MTN Ghana? (1 mark) c. Assuming that the IPO is successful and MTN successfully raises the total amount it set out to raise, i) How many shares would have been offered with regards to a) the primary offering and b) the secondary offering? (1 mark) ii) What will be the gross amount that MTN raises for the payment of dividends? (1.5 marks) iii) In total, how much will exiting shareholders take home? (5 marks) iv) If at the end of the first day of trading, MTN shares sold for 0.78, how much money would MTN and exiting shareholders have left on the table? (2 marks) The MTN board members have asked your boss several questions and he has asked that you provide answers to these so he can prepare a presentation deck for the board meeting. a. What reasons would you offer to the board to convince them that the IPO would be beneficial to MTN Ghana? (2 marks) ii) In what three ways will the IPO cost MTN. Which of these costs were direct and indirect in nature? (3 marks) iii) What is a lock-up period, and why do you thinkht is important for MTN Ghana to notify employees about a potential lock-up period? (2 marks) b. Given the implied market price IC Securities used in determining the total amount of funds to be raised, what would MTN's market to book value for 2017 be? (2.5 marks) ii) What information does this ratio relay about investor sentiments concerning MTN Ghana? (1 mark) c. Assuming that the IPO is successful and MTN successfully raises the total amount it set out to raise, i) How many shares would have been offered with regards to a) the primary offering and b) the secondary offering? (1 mark) ii) What will be the gross amount that MTN raises for the payment of dividends? (1.5 marks) iii) In total, how much will exiting shareholders take home? (5 marks) iv) If at the end of the first day of trading, MTN shares sold for 0.78, how much money would MTN and exiting shareholders have left on the table? (2 marks)
