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GHANA STOCK EXCHANGE: WHAT IS ...

July 17, 2023 - BY Admin

GHANA STOCK EXCHANGE: WHAT IS THE GAX?

UNFORTUNATELY, THERE WERE NO DATA AVAILABLE FROM THE GHANA STOCK EXCHANGE APART FROM THE 11TH OF JULY.. THEREFORE, IT IS NOT POSSIBLE FOR ME TO GIVE A REVIEW ABOUT THE DEVELOPMENT OF THE INDICES IN THE LAST WEEK.

THAT GIVES ME THE OPPORTUNITY TO GIVE A SMALL OVERVIEW ABOUT THE GHANA ALTERNATIVE MARKET (GAX)/
THE GAX OFFERS SMALL AND MEDIUM ENTERPRISES A WAY TO LIST PUBLICLY AND CONSEQUENTLY RAISE MONEY FOR EXPANSION. THERE ARE CERTAIN RULES FOR THE LISTING OF THOSE SMALLER COMPANIES:

1) THE COMPANY MUST HAVE A MINIMUM STATED CAPITAL OF 250,000 GHC;
2) THE COMPANY APPLYING FOR THE LISTING ON THE GAX MUST BE WILLING AND ABLE TO FLOAT 25 ( TWENTY-FIVE) PERCENT OF ITS ISSUED SHARES;
3) THE MINIMUM OF PUBLIC SHAREHOLDERS SHALL BE 20 (TWENTY);
4) THE COMPANY MUST BE IN EXISTENCE FOR AT LEAST ONE YEAR, AND MUST HAVE FILED THE LATEST FINANCIAL STATEMENTS;
5) THE COMPANY DOES NOT NEED TO RECORD ANY PROFIT AT THE TIME OF APPLICATION FOR LISTING, BUT MUST SHOW POTENTIAL TO MAKE PROFIT AT LEAST AT THE END OF THREE YEARS AFTER LISTING.

FURTHER INFORMATION AND RULES CAN BE DOWNLOADED FROM GAX-Rules.pdf (gse.com.gh)

A LISTING ON THE GAX HAS SEVERAL ADVANTAGES FOR THE SMALL AND MEDIUM ENTERPRISE: THESE ARE: FOR EXAMPLE:

1) LESS EXPENSIVE EQUITY FUNDS;
2) INCREASED PUBLIC STATUS;
3) LESS RISK AND MORE LIQUIDITY, AMONG OTHERS.

ABOUT EXTENDED OBLIGATIONS, ESPECIALLY FOR MANAGEMENT AND THE BOARD OF DIRECTORS, LIKE STRICTER SUPERVISION OF ACTIONS BY MANAGEMENT AND THE BOARD, I REFER TO THE RULES CONCERNING THE GAX, FOR WHICH I ALREADY GAVE THE DOWNLOAD LINK.

AS A CONCLUSION: COMPANIES WHICH ON ONE HAND ARE INTERESTED IN BETTER RISK-REDUCED EXPANSION, AND ON THE OTHER HAND ARE READY TO SUBMIT THEMSELVES TO SIOE MORE SUPERVISION, SHOULD SERIOUSLY CONSIDER A LISTING ON THE GAX.

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