GOIL has launched a Renounceable Rights Issue of 139,639,640 ordinary shares to raise GH¢155 million cedis.
The shares which will be of no par value at GH¢1.24 per share, Citi Business News understands forms part of measures to boost the company’s capital investments.
The offer which will end on May 18 2016, is expected to also improve the company’s balance sheet as it positions itself to expand its operation.
Oak Partners Limited, Strategic African Securities Limited and Belstar Capital Limited are acting as the financial advisors to the offer.
Speaking to journalists at the launch, the Chief Executive of GOIL, Patrick Akorli stated that the company must strategically expand to maintain its position as a market leader after the deregulation of the industry.
Mr. Akorli recounted that since GOIL was converted into a public company and listed on the Ghana Stock Exchange in 2007, it has not had the privilege of an equity capital injection.
He explained that the rapid change in the Oil Marketing Industry have made it imperative for an equity injection into GOIL.
Mr. Akorli further explained that unlike its peers such as Total and Shell which enjoy support from their multinational parents, GOIL does not have any such parental support.
He maintained that if the company does not position itself to be a market leader, it would be outmuscled by international Oil Marketing Companies to the disadvantage of Ghanaians.
“This is our own company. Goil is for Ghanaians and its existence is important in this deregulation era to beat price down for Ghanaians,” he said.
Speaking to Citi Business News, a partner at Belstar Capital Limited, Patrick Kingsley-Nyinah stated that raising the funds will allow GOIL to take advantage of the wealth of opportunities available to it in the Oil Marketing Industry.
He was of the view that the move will give GOIL the required financial strength to compete with international oil marketing companies operating in Ghana.
In 2014, GOIL reported a stated capital of GH¢31.81 million for the financial year, while TOTAL’s stated capital was GH¢51.22.
By: Lawrence Segbefia/citibusinessnews.com/Ghana