The total value of the Ghana Stock Exchange has reached 65 billion cedis.
It follows the successful listing of MTN on the stock market, on Wednesday [September 5, 2018].
As a result, the telecom company has started trading its shares on the Ghana Stock Exchange.
MTN concluded its IPO in July which allows the public to own a stake in the company.
Though the IPO couldn’t attract the estimated 3.5 billion cedis target, the 1.146 billion cedis it raised is considered remarkable as it is the largest volume of offer in the history of the Ghana stock exchange.
Speaking at the official listing ceremony, Deputy Managing Director of the Stock Exchange, Ekow Afedzi lauded MTN and stressed that they will increase efforts to attract more multinationals unto the bourse.
He added that the successful listing of MTN should increase the capitalization of the market significantly.
“It is going to have a very significant impact on the exchange; it is going to increase our market value and market capitalization by as much as 9 billion cedis. It is taking our market cap from 55 to 65 billion cedis a whopping 16 percent increase. It is going to increase the number of listed companies to forty.”
“For us at the exchange, this is what we expect companies to do in Ghana; we expect private companies to go out there, raise money and list and provide opportunities for Ghanaians to create wealth,” Mr. Afedzi added.
MTN becomes the 40th company to list on the Ghana Stock Exchange.
It is also the first telecom company to list on the bourse.
The telecom company was unable to secure the 3.5 billion cedis it targeted in the initial Public Offering as it fell short by some 2.3 billion cedis.
Nonetheless, the company’s ability to attract 1.146 billion cedis which is thrice the minimum amount required to list, makes the transaction a remarkable one.
The CEO of MTN, Selorm Adadevoh says his outfit will duly comply with all regulatory requirements to stay relevant to its new shareholders.
“The statement by the Director General of the SEC alluded to ensuring that companies that are listed comply with the regulations and obligations as a listed company. MTN Group is listed on Johannesburg Stock Exchange so our internal policies today actually adhere to very strict compliance and regulatory disclosures already so from that perspective we want to reassure the SEC that we already have those processes in place and where there are very specific requirements for this market or stock exchange, there will be no issues with us complying,”
Meanwhile the industry regulator for the securities market is confident that its new regulations should see to the protection of all customers of the various investments within the market.
As at the close of trading on Wednesday [September 5, 2018] Citi Business News’ check showed that 80 volumes of MTN’s share had been traded at 75 pesewas.
The need to cede thirty-five percent of the company’s operations to the public is in fulfillment of regulatory requirements after purchasing one of the 4G spectrum licenses in 2015.
–
By: Pius Amihere Eduku/citibusinessnews.com/Ghana
Cedi Exchange Rate
