Trading has officially begun on the Ghana Alternative Market (GAX).
This follows the first listing of bonds of financial institution, IZWE loans on Friday 14th November, 2014.
IZWE loans listed 80million cedis in bonds on the makert.
GAX provides a listing avenue for small-and medium-scale enterprises and other companies that may not meet the requirements for listing on the main bourse.
Managing Director of IZWE Loans, Raymond Bismarck speaking to Citi Business News said his outfit’s first listing represents a significant milestone.
“For us it signifies a very important landmark in our journey but it’s just the beginning. So the 80 million is going to be in tranches. So far we have done four tranches. We will open more tranches in the course of next year.”
Asked what it means to be the first company to be listed on the GAX, Raymond Bismarck said “it’s exciting, but I don’t think it’s time to pamper ourselves. I think there’s more ahead of us which we think we have to focus on.”
“Basically, the funds will go into giving loans to our core targets, that is government workers and also to manage our liquidity position”, he added.
A number of companies since the launch of the GAX last year were tipped to list but for a number of reasons have not been able to.
Citi Business News gathers the GAX may not see any listing until the first quarter of next year.
Per the rules of GAX a company applying to list on the market must have a minimum stated capital of GH¢250,000 at the time of listing.
The stated capital of GH¢250,000 shall be the capital after the company’s initial public offer but prior to listing.
Admission will also be granted to a start-up company, provided the applicant submits to the GAX a 3-year business plan, demonstrating clearly the viability of the applicant.
The company seeking admission to the GAX need not have recorded profits historically but must have the potential to make profit at least at the end of its third year of listing.
A GAX listed company only pays an annual fee of ¢ 2,000.00.
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By: Anim Kwaku Boadu/citifmonline.com/Ghana