Meridian-Marshalls Holdings launches share offer to raise GH¢ 2.5 million

meridian pixMeridian-Marshalls Holdings Company, an education oriented institution has launched an Initial Public Offering (IPO) to raise GH¢ 2.5 million to expand its operations.

The company is offering issuance of 25 million new ordinary shares at GH¢0.10 per share in an offer that will run to May 29, 2015.

CAL Brokers Limited, the sponsoring broker to the transaction is committed to underwrite a combined 25 per cent minimum of the amount to be raised under the share offer.

On the successful completion of the offer, the company would then list the shares on the Ghana Alternative market, set up to attract small and medium scale enterprises to the stock exchange.

Dr. Tetteh Nettey, president, Meridian Pre-University and Marshalls University, said the share offer had become necessary because the company wanted to raise funds for the expansion and deliver innovative and world class education.

He said the money raised would be used to construct a multi-purpose classroom, provide working capital and flotation expenses.

Dr. Nettey said in preparation to become a major player in the educational industry in Ghana and an Ivy League University in Africa in the next 10 years, it had acquired prime properties in Accra, and recently, land in excess of 100 acres at Akosombo.

These he said were to help in the expansion of Marshalls College and other important projects.

Mr Kofi Yamoah, the Managing Director, Ghana Stock Exchange (GSE), said the Ghana Alternative Market is a new market platform for small and medium enterprises with high growth potentials.

He said it was aimed to accommodate companies at various stages of their development, including start-ups and existing enterprises, both small and medium.

He said the GAX-SME Listing Support Fund, set up with initial contributions from Ghana Venture Capital Trust Fund and GSE has accrued GH¢ 670,000, out of which GH¢ 343,000 is being used to support the cost of raising capital for three companies to be listed.

He said that the enlisted companies would enjoy an initial public offer financing and underwriting directly or indirectly by the sponsor.

Businesses must have a minimum stated capital of GH¢ 250,000, at the time of listing and at least 20 shareholders at the time of the public float, he said.

By David Adadevoh

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