Mrs. Abena Osei-Poku, Chairperson of the GSE Council, has disclosed that the plans to demutualize the Ghana Stock Exchange (GSE) to make it a Public Limited Company (PLC) is progressing steadily.
According to the Chairperson of the GSE Council, the demutualization, among others, would help transform the GSE from a company limited by guarantee to a company limited by shares.
Mrs. Abena Osei-Poku explained that with this arrangement, the GSE can sell shares to the public and open its ownership to the general public and pay dividend to shareholders.
Mrs Abena Osei-Opoku, who was approved to serve a second term for the GSE Council from 2022 to 2024, in a statement disclosed that stakeholder discussions has been held with Licensed Dealing Members, Associate Members, Ghana Fixed Income Market members and Securities and Exchange Commission.
“Others such as Bank of Ghana and the Ministry of Finance will also be consulted. An Emergency General Meeting will be organised as soon as the various documents are finalised for members’ approval to commence implementation.”Mrs Abena Osei-Opoku
The Three-Year Strategic Plan
Mrs Osei-Poku indicated that the demutualization formed part of the three-year strategic plan of the Ghana Stock Exchange, which included making the GSE preferred platform in the provision of financing and investment for public and private sectors and transform the organization into an emerging market from a frontier one.
The Exchange has developed a 3-year Strategic Plan to transform from a frontier market to an emerging market; demutualized entity operating at optimal capacity with an innovative and competitive orientation; and become the preferred platform for financing and investment for both public and private sectors. All these are aimed at creating a vibrant Exchange to support its mission of providing an efficient securities market in support of national economic development.
Recently, a consulting company, Dwenimmen Group, has been contracted for the exercise and market-wide meetings were held with stakeholders for inputs into the strategic plan. The idea is to ensure that the strategic plan addresses effectively stakeholders` expectations and also lays out the transformational agenda of the GSE.
The Chairperson, moreover, disclosed that the Exchange is working to attract more companies to the Exchange. She opined that whether your company is prospering or facing difficulties, or whether you want to expand or replace obsolete equipment, the need for long term financing is critical. She noted that one way of obtaining such funds is to go public and list on the Ghana Stock Exchange.
Mrs Osei-Poku, meanwhile, averred that an immediate benefit enjoyed by a newly-registered public company is the considerable improvement in its overall financial position. The injection of substantial equity funds, for example, greatly improves the company’s financial position. With such capital injection and good management, higher earnings and dividends are almost certain to follow.