Ghana Stock Exchange courts state owned firms to local bourse

Ghana Stock Exchange GSE 2021212 The Ghana Stock Exchange (GSE)

Sat, 30 Oct 2021 Source: business24.com.gh

Deputy Managing Director of Ghana Stock Exchange, Abena Amoah, says government must consider listing thriving state owned businesses (SoEs) on the domestic capital market to attract the needed investments for growth and profitability.

According to her, the exchange has already identified some state businesses with strong financial prospects that could attract investors should they get listed on the local bourse.

Speaking to Business24 in an interview, she said: “We have entered into a formal partnership with them; we are working with the State Interest and Governance Authority (SIGA) and government to identify those SoEs that are ready for investment to present to the market.”

“From our analysis, there are about 15 of them that we think that government could easily raise over GH¢2 billion from them if it were to get them listed on the market and offload some shares,” she added.

According to the deputy GSE boss, it was better for SoEs to be listed on the market to raise capital instead of them resorting to borrowing, with government having to eventual sell some of them.

“This is one area that government can look at to raise capital. For some of them, with as little as 20 percent sale, it could raise a significant amount of money,” she indicated.

Apart from sourcing money on the market from fund managers and individuals to fund their operations, the move will also enhance corporate governance in the listed state-owned enterprises, she added.

SIGA last year announced that it was pondering a move to list some SoEs on the stock exchange and according to Mrs. Amoah, the doors of the market remain open to state businesses to come on board.

Source: business24.com.gh