The Managing Director of the Ghana Stock Exchange (GSE), Abena Amoah, has disclosed that the Ghana Stock Exchange (GSE) is collaborating with the State Interests and Governance Authority (SIGA), to list about 10 State Owned Enterprises (SOEs) on the local burse this year, 2023.
According to the Managing Director of GSE, this is to create additional opportunities for the private sector to buy shares and diversify the activities of the enterprises.
Ms Amoah iterated that the listing of the enterprises on the Stock Exchange is aimed at improving their efficiencies and corporate governance structures.
“We are working with SIGA, to have 3-10 SOEs list on the market, raise capital and do the expansions and production of goods and services. We want them this year.”
Abena Amoah
The MD added that, although the paper works have been finalised, what is left now is for government to give its approval for the commencement of the listing.
“We have asked government to make the decision, we’ve done our work. Government would have to approve the listing and we are ready to start the work because investors are looking for diversification”.
Abena Amoah
Ms Abena, meanwhile, called on government and private sector companies which are ready to consider opening up and list on the bourse for investors to invest in their operations.
Benefits of Listing
Citing some benefits, Ms. Amoah said listing on the GSE will help improve the operations of companies by ensuring good corporate governance. She noted that such critical requirements will help companies maximize profits, while reducing cost.
In 2018, telecommunication giant, MTN Ghana was the last Company that offered an IPO on the Stock Exchange.
The Minster for Public Enterprises, Joseph Cudjoe, recently disclosed that the names of 12 State Owned Enterprises (SOEs) have been submitted to cabinet for approval for them to be sold to private investors.
According to him, the companies are state enterprises performing below expectations and making losses. Mr. Cudjoe stressed that government will partly sell some of the enterprises and list others on the Ghana Stock Exchange. Mr. Cudjoe added that the names of the institutions would be made known after the list receives cabinet approval.
“I have submitted 12 enterprises for cabinet approval in this three categories. I’ll not be able to tell you the numbers that are for inviting strategic investors, and equity disposals, government equity disposal.”
Joseph Cudjoe
Mr Cudjoe explained that some strategic State Owned Enterprises will be listed to enhance transparency and allow the public to own part of such State Owned Companies.
“Some of the SOE will be listed on the Stock Exchange. This will mean selling part of government’s shares so that private sector comes into it. So, this categories we are looking for government approval and subsequently would implement the approval.”
Joseph Cudjoe
Mr. Cudjoe noted that it is time for state companies to run profitably to help protect tax payers’ monies. He stated that there is the need to deliberately put in place human resources to strategically make state companies viable.
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