Graphic Business News

Three companies to list on GAX this year

By: Emmanuel Bruce
Mr David Tetteh making hiss presentation at the workshop
Mr David Tetteh making hiss presentation at the workshop

The Ghana Alternative Market (GAX) is in discussion with five companies who are seeking to raise money from the exchange to expand their operations.

One of the companies, Digicut Advertising, has already secured approval from the Securities and Exchange Commission (SEC) to list with two others expected to receive their approval by the end of the year.

This will bring the total number of listed companies on the exchange to seven.

This was disclosed by a Manager at the GAX, Mr David Tetteh, in an interview with the Graphic Business on the sidelines of a training programme which was organised by the USAID Financing Ghanaian Agriculture Project (USAID FinGAP), in partnership with the Institute of Financial and Economic Journalists. The training was aimed at enhancing the capacity of financial journalists on the capital market.

Advertising firm Digicut recently secured approval from the SEC to list on the Alternate Market of the Ghana Stock Exchange.

The company is expected to launch its initial public offering in the coming weeks, which will see it raise an amount of GH¢2.8 million. 

Digicut, which is a subsidiary of Groupe Nduom, is planning to sell 35 million shares at a price of eight pesewas. According to a circular to the investing public, 750 shares would be the minimum that one can buy.

Mr Tetteh said two other companies which he refused to name were also at a very advanced stage of getting approval to also trade some of their shares on the market.

Access to capital
Access to capital to expand businesses has been a major challenge to many entrepreneurs and businesses in the country.

Thankfully, the GAX was launched to solve this problem; however, since its introduction four years ago, only four companies have taken advantage of it by listing on it.

Mr Tetteh said the exchange had, therefore, embarked on an education drive to get more small and medium enterprises (SMEs) to list on the bourse.

He noted that the exchange was educating the SMEs on the need to look at the market to raise capital.

“The problem is not access to credit but about the companies. This is because there is the capital market where companies can always raise money from but have refused to,” he stated.

Name and shame
The Director General of the SEC, Rev. Daniel Ogbarmey Tetteh, said at the training that the commission would soon be organising periodic press conferences to brief the public on the happenings in the securities exchange market.

He said the commission would also be putting out quarterly reports of the industry which would name and shame players who have acted contrary to the rules governing the industry.

“By half year, we will introduce quarterly reports that will educate the public on what is going on in the securities exchange space,” he noted.