Samba Foods launches IPO to raise GH¢2,500,000

samba pixSamba Foods Limited, an indigenous food and spicy processing company, has launched an Initial Public Offer (IPO) to raise long-term funds for expan-sion.

The share offer being made to the general public is an offer for subscription for GH¢3,475,453 ordinary shares of par value at GH¢0.72 per share in order to raise an amount of GH¢2,500,000.00.

On the successful completion of the offer, which will run from 23 February to March 13, the company would then list the shares on the Ghana Alternative market, set up to encourage small and medium scale enterprises to the stock exchange.

Speaking at the launch Mrs. Leticia Osafo-Addo, CEO of Samba Foods said proceeds from the share offer would be used for planned upgrade of processing plant facilities and paying-off of existing indebtedness.

“The Samba management has recognised the need to modernise and expand its operations in order to position itself in the Ghanaian condiments and seasoning market,” she said.



She said the processed foods industry was very competitive with numerous participants both local and foreign including huge multinationals such as Unilever and Nestle dominating the market mainly with products of foreign origin.

Also, she said various businesses have sprung up in recent times to engage in the importation of various already produced and packaged foods including spices, seasonings and condiments.

This she said had led the indigenous companies to restructure their programmes and also to implement new business modules with lower cost inputs and aggressive marketing and distribution strategies to stay competitive.



Ghana is predicted to have a GH¢1 billion condiments and seasoning market with an annual growth rate of 20 per cent which will be mainly driven by its seasoning market with an open annual growth rate of 20 per cent which will be driven mainly by its burgeoning population consisting of an emerging middle class with significant spending power as well as its growing community of expatriate workers mainly as a result of the nascent oil industry.

This has led to a rising number of eateries, restaurants, cafes and grocery stores. The economy has expanded 7.9 per cent in the last year along with increased consumer spending.



Mrs.Sarfo-Addo said the company was well positioned to meet the prevailing challenges in the food processing industry.

The company she said had carved for itself a reputation of being a pioneering force in the industry after being the first to commercialise the production and distribution of ‘Shito’ and continues to churn out new innovative food products onto the Ghanaian market.

She said the company planned to introduce three new unique and locally produced products onto the market this year to increase its market share and boost revenues.

“Samba Foods regular successful completion of routine YUMS/KFC Food Safety Audit, has given the company the license to engage in supply services to all KFC restaurant outlets across the country,” she said.

Director General of the Securities and Exchange Commission, Dr. Adu Anane Antwi, urged SMEs to raise more capital through the GAX to boost their operations.

“Owning property together has never been our way of life, everyone wants to own property that belongs to them, but that mentality must be worked on, to ensure we don’t behave same in our businesses,” he said.

By David Adadevoh

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