Meridian-Marshalls Holdings to launch IPO

Meridian-Marshalls Holdings (MMH), owners of Meridian Pre-University (MPU) and Marshalls College (Marshalls) is set to launch its Initial Public Offer (IPO) on the Ghana Alternative Market (GAX) of the Ghana Stock Exchange.

The IPO, which will be launched on April 22, 2015 at the World Trade Centre in Accra, is expected to commence from Monday, April 27, 2015 and run for a month.

“We are seeking to raise GH¢2.5 million through the issuance of 25 million new ordinary shares at GH¢0.10 per share,” it said in a statement issued in Accra yesterday.

It said the share offer had become necessary because the company wanted to raise funds for the expansion and delivery of innovative and world class education.

The Ghana Alternative Market (GAX) is a parallel market operated by the Ghana Stock Exchange. It focusses on businesses with potential for growth.

The GAX accommodates companies at various stages of their development, including start-ups and existing enterprises, both small and medium.

Listing on this market will afford companies the opportunity to secure longer term capital. The raising of such capital allows for future expansion, growth and greater ability to stand competition.

Raising long term capital through GAX will be at a relatively lower cost to the company. Advisory and regulatory fees involved will be lower than that of the main list on GSE. Securities and Exchange Commission guidelines insist on total cost not exceeding 5 per ent of the total amount to be raised.

An immediate benefit enjoyed by a GAX listed company is the considerable improvement in its overall financial position. The injection of substantial equity funds, for example, greatly improves the company’s balance sheet. With such capital reinforcement and market discipline imposed, improved profitability and efficiency are expected.

By Times Reporter

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