GSE prepares to launch new alternative exchange

The Ghana Stock Exchange (GSE) the statutory regulator of the Ghanaian bourse will in the next few weeks launch the Ghana Alternative market which is intended to promote the listing of small and Medium scale Enterprises in the country.

The Ghana Alternative Market also forms part of the VCTF strategy aimed at providing an alternative exit route for venture capital Fund Managers and SME investors. It is also to improve liquidity on the stock market by providing a structure conducive to attract SMEs to float shares on the Ghanaian bourse. This will enable them to raise capital through the Exchange to support growth and expansion.

Already the Venture Capital Trust Fund has made available US$ 500, 000 into the revolving fund to support the scheme.

According to the CEO of the VCTF, Daniel Duku, at the signing ceremony last two years, the Exchange will set up a revolving fund to pay for the listing expenses such as underwriting and legal fees of the companies adding that an agreement to that effect has been signed with Accra-based Fidelity Capital Partners, to pool resources for the fund.

The GAM will also enable the companies broaden their investor base and provide liquidity for their shareholders and investors.

The GAM for the SMEs will also provide a revolving fund to support the cost of raising capital deferment of up-front fees. This means that companies listing on the GAM could apply for funds under this support fund to pay fully or partly for the cost of advisory services.

Economy Times has learnt that listing on the GAM will raise the level of the investing community’s awareness of the company and its products. This will result in a greater ability high-caliber employees and increase general business opportunities.

Listing on this market will afford companies the opportunities to secure longer term capital. The raising of such capital will allow for future expansion, growth and greater ability to stand competition. Raising long term capital on the market would be relatively lower cost to the company.

The VCTF is currently supporting the establishment of the Ghana Alternative Market (GAM) while also contributing financial and technical resources to the establishment of an SME Listing Revolving Fund facility. The facility is expected to provide resources to qualifying high-growth companies to have listing expenses paid ahead of actual public floatation.