Meridian-Marshalls Holdings (MMH) Company Limited, owner of Meridian Pre-University and Marshalls University College, has listed on the Ghana Alternative Market (GAX) to raise GH¢2.5million to finance infrastructural and faculty expansion projects.
The company on Wednesday issued a total of 25 million new ordinary shares -- representing 25 percent of an outstanding 100,000,000 post offer shares -- of no par value for GH¢0.10 per share to raise the said amount within one month, becoming the first educational institution to list on the GAX.
The money will be invested in completing a multi-purpose classroom block that will serve as a permanent city campus for Marshalls University; acquisition of logistics and learning materials; and also cater for all floatation expenses.
President and Founder of MMH, Dr. Tetteh Nettey, speaking at the launch of the Initial Public Offer (IPO) said the company is floating shares to obtain the much-needed capital to cushion management's expansion strategy. "The decision to list on the GAX is in line with our quest to deliver innovative and industry-leading educational experiences in the country.
"The money we are seeking to raise will help us to expand existing cutting-edge programmes, build spacious and conducive lecture halls, and boost the competence of our faculties to reposition Marshalls University as a game-changer on the educational landscape," he said.Dr. Nettey said MMH has a strong policy of providing diversified and career-oriented post-secondary education through the delivery of unrivalled tertiary education, and that its presence on GAX will help secure funding to support that vision."At Marshalls University, we offer industry-relevant programmes and customer-centred services; and that is why we need support to build a brighter future for our children.
"With this, the country will have the requisite human resource to run our industries and other key economic sectors to drive growth," he said.Director-General of the Securities and Exchange Commission (SEC), AduAnane-Antwi, commended the company on its decision to seek long-term funding from the Exchange to support its infrastructural projects.
He said the GAX is ready to help entrepreneurs develop and sustain their businesses, and advised that corporate bodies should leverage opportunities offered by the market to raise capital for financing their business.
"Businesses cannot finance long-term projects with short-term capital, and that is why entrepreneurs must tap the opportunities offered by the GAX to raise more capital to grow and sustain their business so that they can create the needed jobs for economic transformation.
"The Ghana Stock Exchange (GSE) introduced the GAX as an alternative market for small-and medium-scale enterprises with high growth potential but do not meet the requirements for listing on the main bourse.
Soruce: Business & Financial Times
