The
firm wants to raise Gh5million for each applicant company.
Small
and medium scale businesses have an opportunity to raise quality finance from
the stock market, according to Benjamin Afreh, General Manager of GN Investment.
“Nobody
is saying it’s not good to raise money from the banks but when you have an
alternative, you have to take advantage of it,” he said.
The
GAX is a market operated by the Ghana Stock Exchange with focus and special
emphasis on SMEs with high growth potential.
The
market has the benefit of easing access to long term capital at lower cost for small
companies seeking to raise a Gh250,000 minimum capital.
“The
maximum cost to you will be about five percent; all that is needed is that you’re
a viable company so you’ll bring value to shareholders,” Mr. Afreh noted.
Patronage
of the facility is currently low but the investment banker is confident it will
gradually pick up with increased education.
“Already,
we have two in the basket we’re working with and there are about five more we’ve
spoken with in the SME sector and what we are helping them do is put their financials
together, help put their marketing and public relations campaigns together and
we’ll ensure that we get the legal side also done, then we put them on the
market,” said Mr. Afreh.
Story
by Kofi Adu Domfeh
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