15 state-owned enterprises to be listed on the Ghana Stock Exchange
According to Ms Abena Amoah, Deputy CEO of the Ghana Stock Exchange (GSE), the government is looking to raise approximately GHC2 billion by listing 15 targeted State-Owned Enterprises (SOEs) in order to make them viable and appealing to investors.
According to Madam Amoah, the GSE has formed a formal relationship and is currently collaborating with the Ministry of Public Enterprises and the State Interest and Governance Authority (SIGA) to ensure that the program succeeds by assessing SOEs for investment readiness.
Speaking to the Business and Financial Times (B&FT) during the 10th Ghana Economic Forum (GEF) in Accra, she revealed that the 15 firms had been appraised as having high potential for returns on any such investments.
According to the GSE, these 15 companies are now doing well among approximately 100 SOEs, and listing them on the exchange will be very appealing to investors, allowing them to quickly raise the necessary amount.
“The discussions on timeframe are ongoing and what we are waiting for is the formal government approval of the first group of SOEs. We are waiting to start working with their advisors and to list them on the market,” she said.
Indeed, the GSE has not listed any large securities on the market through a public offering in the last three years, since the IPO listing of MTN in 2018. That listing brought in nearly GHC1 billion, which was a new high.
One of the reasons for the necessity to list and float shares, according to Madam Amoah, is to securitize these SOEs’ revenue sources and allow them to raise funds from the public for operations rather than relying on the government for funding.
According to her, “the upcoming listing would also strengthen and improve corporate governance of these SOEs through strong management boards, continuity in management and sustainable financing”.
Source: Richard Mensah Adonu | Join our Telegram Group
