Intravenous Infusions Limited (IIL), Ghana’s market leader in the supply of intravenous (IV) fluids, has listed and began trading its shares on the Ghana Alternative market (GAX) with a call on the company to uphold the principles of good corporate governance.
Dr. Adu Anane Antwi, Director-General of the Securities and Exchange Commission who made the call at the listing in Accra yesterday said good corporate governance ensures investor confidence in a company hence the need to take it seriously.
The listing followed the successful completion of an Initial Public Offering (IPO) which commenced in October to raise GH¢12 million to expand its operations.
Dr. Antwi urged the directors of the company to be ready to make disclosures to the investing public to build the necessary confidence in the business.
He urged brokerage firms, investment and finance companies to syndicate the underwriting of the IPO if they could not do it alone.
Mr. Kofi Yamoah, the Managing Director, Ghana Stock Exchange, urged SMEs to take advantage of the many incentives for listing and trading on the GAX to raise capital to expand their operations.
He said the GAX is solely dedicated to SMEs and the listing rules have been made flexible to accommodate companies desirous to list.
Intravenous Infusions Limited began operations in 1974 and is the oldest and most reliable indigenous IV fluids producers in Ghana and West Africa.
The Koforidua-based company currently supplies from 50-60 per cent of IV fluids to hospitals and pharmacies nationwide and exports about 10 per cent of its products to neighbouring countries such as Cote d’Ivoire, Burkina Faso and Togo.
Mr. Richard Okrah, Managing Director of ILL, said the listing would give Intravenous Infusion the opportunity to consolidate its market leadership position in Ghana and further increase its footprint in the ECOWAS region.
He said the injection of capital would allow the company to complete installation of a new production plant to increase capacity from the current 4.5 million bags to 15 million bags of IV fluids per year.
While the company has the capacity to produce 4.5 million bags of IV fluids per year, the ageing machines and manual processes have seen production fall over the last few years.
Mr. Okrah said the installation is currently 90 per cent complete.
About 6.7 million bags of IV fluids were used in Ghana in 2014 and this is expected to grow by approximately 50 per cent in the next five years.
By David Adadevoh