The President of the Association of Ghana Industries (AGI), James Asare-Adjei, has described the listing of indigenous food processing company Samba Foods on the Ghana Alternative Exchange (GAX) as a paradigm-shift in the thinking of local entrepreneurs.
"This is a paradigm-shift in the thinking of entrepreneurs in the economy. This is a very good example for other businesses to look at alternative financing means apart from debt from banks and other financial institutions," he told the B&FT on the trading floor of the Ghana Stock Exchange.
Samba Foods has officially listed on the GAX as the first equity listing after meeting all regulatory requirements and a successful Initial Public Offering (IPO) launch a couple of month ago that raised GH¢2.5million. The stock price started trading at 72pesewas and went up by 1pesewa after the purchase of 1,000 shares.
Led by uniSecurities as lead financial advisor and SIC Brokerage as sponsoring broker, Samba Foods therefore became the second company to list after Izwe Loans -- a pan-African financial services group -- announced the listing of a GH¢80million Medium-Term Note Programme on the GAX last year.
Mr. Asare-Adjei noted that the AGI will leverage on the listing of Samba to reach out to its numerous members to see the stock exchange as a better financing alternative, since it is a cheaper source of raising medium- to long-term capital.
"With current unfavourable macroeconomic indicators, it is very important that businesses look at other means apart from debt financing as a means of expanding their businesses. The AGI calls on indigenous businesses to pool resources and take advantage of the GAX, which offers a lot of flexibility for SMEs to list. I think what we have witnessed today will open the door for more businesses, especially AGI members, to take advantage of that," he added.
Chief Executive Officer of Samba Foods, Leticia Osafo-Addo, excitedly stated that the company started as a micro initiative and is today being listed on the GSE under the GAX.
"We are proud that Samba Foods has taken the strategic step to join the prestigious club of quoted companies in Ghana, and once again use this opportunity to call on other SMEs which are undecided whether to list their enterprises on the exchange to make up their minds as there are significant benefits to be derived from being a listed company."
She added that the public financial market is currently among the cheapest source of medium- to long-term capital and as such businesses should bank on this advantage, instead of making it harder through increased attendant cost.
The CEO stated that in the near-future Samba seeks to have an industrial estate comprising processing bays, warehouses and a office complex on a four-acre industrial land in Tema's industrial area.
Managing Director of the GSE Kofi Yamoah stated that introduction of the GAX is to demonstrate to the business community that the key goal of the exchange is to facilitate the growth of businesses. "We have created far-reaching incentives to make it easier for SMEs to list on the stock market."
He expressed his gladness for Samba's successful listing, and wished the company a prosperous future. "We want it to be even more successful so that we can use it as an example to convert other SMEs to the capital market."
Source: B&FT online
