THE Ghana Stock Exchange (GSE) will from next year adopt wireless technology in securities trading on the local bourse.
The adoption of mobile trading, which allows investors to access trading platforms from their mobile phones rather than being confined to traditional trading methods through computer, will help spread the culture of investment wider and make trading easy and convenient.
The Deputy Managing Director of the GSE, Mr Ekow Afedzie, said the GSE has already received proposals from wireless technology vendors and would from 2019 aggressively pursue the use of mobile trading.
“Come next year, that is something we are going to pursue more aggressively,” he told the GRAPHIC BUSINESS on September 5 after telecom giant, MTN Ghana formerly listed on the GSE.
According to him, the consideration of mobile trading by the GSE, a technology which has long been used on the bigger stock markets around the world such as the New York and London stock exchange, had become necessary following MTN’s successful IPO and subsequent trading of the shares through mobile money.
According to Mr Afedzie, the success of MTN’s IPO and the subsequent trading in the shares through mobile money could be a precursor to opportunities in adopting mobile technology for share offering and trading, especially given the pace of mobile money adoption in the country over the past decade.
“The use of mobile technology for the IPO is quite innovative and the first on the stock exchange and the interesting thing is that they will continue to use mobile money to trade the shares even on the secondary market, so as an exchange, we will try and take advantage of that and also do mobile trading of securities,” he said.
First mobilemoney IPO
A whopping 108,434 retail investors who applied for MTN’s historic IPO, subscribed through the mobile money portal, which represent 84.6 per cent of the total number of applicants.
With such a significant number of applicants subscribing for the IPO via mobile money, another use case for the technology has been demonstrated.
It reveals the potential of the technology to accelerate financial inclusion in the capital markets as such initiative will encourage many people in the country who will, ordinarily, not have access to the capital markets to be involved with investment in securities.
MTN Ghana was on September 5 listed on the GSE to officially begin trading its shares after an IPO that raised GH¢1.15 billion.
The historic GH¢1.15 billion realised from 128,152 applicants is the biggest in terms of value and volume in the history of the GSE.
The company set out on May 29 this year to raise some GH¢3.4 billion through an IPO but ended up with GH¢1.15 billion which was still in excess of the 10 per cent success rate of the targeted amount.
Given that an IPO is not supposed to raise the full amount targeted because it is dependent on demand and supply dynamics, the amount realised is a record on the local market since the inception of the GSE in 1989.
MTN offered 4,637,394,533 ordinary shares valued at an Offer Price of GH¢ 0.75 per share but in the first trade of 100 shares on September 5, the stock rose four per cent to GH¢0.78.
The shares offered was 35 per cent of the firm which had over 17.83 million subscribers with a market share of approximately 55.09 per cent as at December 2017. — GB