The
GAX has been established by the Ghana Stock Exchange (GSE) to facilitate the
mobilization of long term capital by SMEs and other indigenous companies.
Deputy
Managing Director of the GSE, Ekow Afedzie, says the successful share
floatation of the three firms will mark the official launch of the alternative
market.
“So
far the interest is quite good; we’ve had three companies applying to utilize
the funds already, we’ve approved them and we are hoping that very soon we’ll
have these three companies floating shares onto the market and that will serve
as a good example for others to follow suit,” he said.
The
idea of the Ghana Alternative Market is to make it easier for small businesses
to list on the stock market by shortening procedures and reducing requirements
for listing.
According
to Mr. Afedzie, cost has been lowered and incentives introduced to make the market
attractive to SMEs.
The
GSE has also intensified education to promote opportunities in listing on the alternative
market.
Investment
advisory firm, Prestige Capital, is leading activities to get businesses in the
Ashanti region to take advantage of the GAX.
Chief
Executive Officer, Prince Acheampong, tells Luv Biz rural banks and
microfinance companies should turn to the GAX to access long term financing.
“The
first thing is to have access to very cheap long-term funds because usually
they do on-lending; and if you take depositors’ funds, for instance three
months investment, you can’t use that money to engage in any capital intensive
project like building branch networks. But if you list on the Ghana Stock
Exchange, you’ll be able to raise that capital required for those expansion,”
he opined.
Mr.
Acheampong added that trading on the stock exchange helps build good brands and
enhances the credibility of the listed company.
SMEs
with high growth potential can raise a Gh250,000 minimum capital on the GAX.
Story
by Kofi Adu Domfeh
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