SEC Extends Golden Web's IPO

The Securities and Exchange Commission (SEC) has extended the Initial Public Offer (IPO) of the Golden Web Company Limited (GWEB) an additional 30 days after request from the company for its extension.

Speaking to the Managing Director, Mr. Thomas Bello, he said the offer has been extended to cater for prospective shareholders who did not get the chance to purchase its shares at the beginning of the offer.

The share offer will end on August 8 this year.

Golden Web (GWEB) Limited, an oilseed processing factory in Kumasi wants to raise ¢4.5 billion through the "fast track approach" of listing on the GSE as working capital, to expand the Company's operations.

GWEB, a Kumasi-based vegetable oil processing company, which was incorporated to undertake the exportation of wildlife but shifted focus since 1994 to the processing of vegetables oils, has been listed for the second time on the Ghana Stock Exchange (GSE) on June 11, 2004, but was unable to meet the mandatory six-month period, listing specifications as a result of a finance lease facility contracted by the company on October 18, 2004 from the Italian Government.

The company's total production of palm kernel oil, soya bean oil and soya bean cake is sold to the local market.

However, 80% of the total production of palm kernel cake is exported whilst the remaining 20% is sold to the local poultry industry.

GWEB is also accessing Long Term Capital to substantially reduce the debt level of the company so as to lessen the impact of financial charges and thereby improve its earnings and cash flows as well as to install additional capacity for the oil refinery and raise additional working capital to expand the company's operations.

It is offering a total number 17,000,000 shares at ¢550 each.