HTN Towers plc, an independent telecoms tower operator in Nigeria, announced its intention to proceed with an initial public offering. The Company intends to target a total free float of 50-60%.
It is intended that an over-allotment option of up to 15% of the total offer size will be made available.
Final pricing and the commencement of conditional and unconditional dealings in the Ordinary Shares on the London Stock Exchange is expected to be in early November 2015.
The company intends to raise proceeds to fund capital expenditures related to the Group's growth strategy of approximately US$125 million including: Approximately US$80 million to fund construction of hybrid and solar equipped new build-to-suit towers; Approximately US$13 million to fund the deployment of hybrid and solar technology on additional sites; approximately US$12 million to fund upfront investments in the towers managed under the SWAP Technologies MSA and pay existing trade creditors pursuant to the MSA; The balance for general working capital purposes of the Group.
The Company also plans to apply the balance of the proceeds (targeted at a minimum of US$40 million) to Helios Towers Mauritius Holdings Limited or "HTMHL", representing the issuance and sale of shares by the Company on behalf of HTMHL which satisfies the loan note put into place in connection with the reorganisation completed in preparation for the Company's initial public offering and Admission. In certain circumstances, HTMHL may sell some of its existing Ordinary Shares in the Global Offer.
The Group's Revenue and EBITDA for the year ended 31 December 2014 were US$73.3 million (US$36.0 million for the six months ended 30 June 2015) and US$31.7 million (US$19.8 million for the six months ended 30 June 2015), respectively, representing an EBITDA margin of 43% (55% for the six months ended 30 June 2015).
In relation to the Global Offer and Admission, Merrill Lynch International and Citigroup Global Markets Limited are acting as Joint Global Co-Ordinators, Joint Bookrunners and Underwriters, Investec Bank plc and the Standard Bank of South Africa Limited are acting as Joint Bookrunners and Underwriters, and Exotix Partners LLP and Peel Hunt LLP are acting as Co-lead Managers and Underwriters.
by RTT Staff Writer
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