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  • Who we are
    Introduction

    The Ghana Stock Exchange since 1990 has been gradually facilitating the development of capital market in Ghana. The Exchange has put in place facilities for businesses and the Government to raise long-term capital as well as for investors to obtain liquidity, reasonable capital safety and diversity of investments. Since its establishment, many companies as well as the government have raised funds through the floatation of company shares to the general public.

    Brief History

    The idea of establishing a Stock Exchange became an issue for discussion for almost two decades under various governments prior to its implementation. However, in February 1989, the issue of establishing a stock exchange was moved into higher gear when a 10 member National Committee, under the Chairmanship of Dr. G.K. Agama, then Governor of the Bank of Ghana, was set up by the then PNDC Secretary for Finance and Economic Planning, Dr. Kwesi Botchwey. Other members of the Committee include;-

    • Dr. Kobena Erbynn – Former Chief Executive, GIPC
    • Mr. N. K. Kudjawu - Kudjawu & Co., Accra, Chairman of GSE
    • Nana Wereko Ampem II - Former Chairman, Barclays Bank Ghana Ltd.
    • Mr. Afare Donkor - Former Managing Director, CAL Merchant Bank
    • Mrs. S. Baeta-Ansah - Former Managing Director, Home Finance Co. Ltd.
    • Mr. E.J.A. Aryee - Former Managing Director, NTHC Ltd.
    • Dr. J.K. Richardson - Former Managing Director, Pioneer Tobacco Co. Ltd.
    • Mr. S.Y. Osafo-Maafo - Former Managing Director, National Investment Bank
    • Mr. Yeboa Amoa - Former Managing Director, GSE

    The work of the committee was to consolidate all previous work connected to the Stock Exchange project and work out modalities towards the actual establishment of the Exchange. As a result of the work of the committee, the Stock Exchange was established in July 1989 as a private company limited by guarantee under the Companies Code, 1963. It was given recognition as an authorized Stock Exchange under the Stock Exchange Act of 1971 (Act 348) in October 1990. The Exchange was inaugurated on November 12, 1990 and trading commenced on its floor the same day. It was however, officially launched on January 11. 1991. The Exchange however, changed its status to a public company limited by guarantee in April 1994. Ghana Stock Exchange is a member of the Association of Africa Stock Exchanges (ASEA),

    Objectives

    The Exchange was set up with the following objects:

    • to provide facilities to the public of Ghana for the purchase and sale of bonds, stocks, shares and other securities of every kind and for the investment of money.
    • To control the granting of quotations on the securities market in respect of bonds, shares, and other securities of any company, corporation, government, municipality, local authority or other body corporate.
    • To regulate the dealings of members with their clients and with other members.
    • To correlate the stock dealing activities of members and facilitate the exchange of information for their mutual advantage and for the benefit of their clients and to offer facilities whereby the public can be informed of the prices of securities dealt in by members.
    • To co-operate with associations of stockbrokers and Stock Exchanges in other countries, and to obtain and make available to members information and facilities likely to be useful to them or to their clients.
    • To promote, support or make known the views of the Company on legislative or other measures affecting the aforesaid objectives.
  • How we support SMEs
    GAX-SME Listing Support Fund

    The listing support fund was developed in partnership with the African Development Bank and the Venture Capital Trust Fund to assist SMEs in covering the initial costs associated with the listing process. This fund is intended to provide an incentive to SMEs and encourage them to use the GAX to acquire long-term capital and expand their businesses.

    Fund details
    The GAX-SME listing support fund is endowed by the Ghana Stock Exchange, African Development Bank, and the Venture Capital Trust Fund, and administered by the GAX Governing Committee. The objectives of the fund are: to pre-finance whole or part of the advisory and listing expenses for companies seeking to list on the GAX; to encourage SMEs to raise capital through the GAX; to support growth and expansion in the SME sector. The level of financial support offered will be determined on a case by case basis. It is possible that companies may receive 100% of the anticipated costs for advisory and listing expenses.

    The support provided by the fund will be provided during the initial disbursement of funding and the date of listing. If for any reasons the company withdraws its public offer, the company shall be responsible for refunding the amount of funding disbursed. It is a revolving fund, the sustainability of which depends on repayment therefore any amount disbursed will be repayable in full according to the terms set out by the Governing Committee; these terms will be specified in an Agreement upon receipt of funds. The amount to be repaid will remain interest-free up until the date of listing; thereafter the outstanding balance will be subject to interest.

    Application and Approval Process
    SMEs must apply in writing to the GAX Officer. A complete application must include:

    1. A covering letter specifying: the request amount; projected time table for listing; expected proceeds from the share offer
    2. The work schedule of advisors, a detailed budget for advisory services and listing expenses
    3. Financial proposal from sponsors and advisors
    4. A board resolution and a shareholder resolution authorizing the proposed share offer and GAX listing
    5. A board resolution authorizing the company to enter into a pre-listening financing agreement with the GAX-SME Listing Support Fund
    6. If available, an offer document or prospectus
    7. Certified copies of registration documents (no more than one-month old)
    8. Basic company information including: name; physical and postal addresses; email address, telephone number, and fax number; and the list of directors, secretary, auditors, bankers, and legal advisors

    Once these documents have been provided and the application has been approved as complete and acceptable for consideration, a letter of acknowledgement will be issued

    Within ten business days of receipt, the GAX Officer will review the application. The decision process will include an assessment of factors such as the company’s suitability for listing and the company’s capability of listing without support from the fund, as well as meetings with the company’s advisors and sponsors. The GAX Officer will prepare a report for consideration by the GAX Governing Committee. The applicant will be informed of the approval or decline of funding in writing. If a funding offer is approved, the applicant must accept the offer in writing within ten business days of the initial offer letter.

    Once funding has been approved and accepted, the GAX Officer shall consult with the company and sponsor to draw up legal documentation. The company will need to satisfy any pre-disbursement conditions before the funding amount can be allocated. The GAX Officer will be responsible for determining whether conditions have been adequately met. The funds will be disbursed directly to the identified service providers to cover advisory and pre-listing expenses; the company will be notified of payment confirmation. The GAX Officer will closely monitor the listing process and will need to receive regular updates on progress from the sponsor.

  • Contact Us

    GHANA STOCK EXCHANGE (GSE)
    P.O. BOX 1849, ACCRA
    5th & 6th Floor Cedi House, Liberia Road, Accra
    Tel: 0302 669908/669914/669935
    Fax: 0302 669913
    Email: info@gse.com.gh
    website: www.gse.com.gh