Industry: Food Processing and Preservation
No. of Employees: 15 permanent staff / 10 casual staff
Date of listing: 12 May 2015
Listing category: Equity
Initial share price: GHC 0.72
Value of company under public ownership: 58.16 percent
Upon returning home in 1982, from Germany where I trained as an anaesthetist and intensive therapist from 1970 to 1979, I identified a business opportunity: the commercial production and distribution of our indigenous pepper sauce shito. Shito is a traditional pepper sauce which forms a major part of the food items in the coastal regions of Ghana, but has also been popular with student populations in boarding institutions throughout the country. Though every student uses shito, there was no ready-made shito on the Ghanaian market. This was the opportunity that I identified and captured.
I initially made ten jars of shito to test the market and was satisfied that this was a product that can be successfully produced in this market. Twenty jars of shito were produced for Accra and the results were overwhelming. My company was the first to produce, package, and distribute shito commercially. A new enterprise was born and was christened SAMBA.
Rapid growth followed and SAMBA was found in all the departmental stores throughout Ghana. SAMBA also found a market internationally. Everywhere the Ghana Armed forces peace keeping troops went for their operations, SAMBA followed: to Cambodia, Rwandan, Congo, Sierra Leone, Liberia, and the Middle East, just to mention a few. SAMBA also went in small quantities went to export destinations such as the USA, Holland and the Scandinavian countries.
The company has experienced hurdles along the journey. SAMBA went into coma due to cash flow problems but was eventually resuscitated with a short term overdraft of 700 GHC in 2001. SAMBA came back to life and the recovery was miraculous and almost instantaneous.
SAMBA then diversified into other products. In addition to shito we also produce peanut butter (in fact SAMBA produces the peanut component of a top quality product Choco Delight), jam, marmalade, and a variety of fresh fruit juices.
Again a failed joint venture agreement facilitated by Ghana Investment Promotion Centre, with an Austrian company in 2005, one of the first female owned SMEs, sent SAMBA to the gutters. After signing the JV agreement in Vienna, SAMBA was ready for a smooth take off. However we later discovered that it was a wishful thinking; it was rather a crash-landing with huge casualties: debts.
The machines supplied were very old, outmode, and discarded, small capacity laboratory equipment, unsuitable for any serious industrial activities.
SAMBA became incapacitated again, but this time not comatose. Using our previous experience, SAMBA quickly reorganised and strategized. We appointed a new dedicated and committed board of directors and, with assistance from the non-banking institution IOKOCREDIT, came up with a detailed business and strategic plan to source for funds to continue the business.
Funds from a Venture Capital Company paid part of our indebtedness. The remaining balance was used to purchase additional machines and the setting up of food safety and quality assurance systems of international standards in the factory. As a very reputable international fast food chain, KFC approached us to produce and package pepper sauce for their restaurants and other fast food chains.
Leticia Osafo Addo, Managing Director
Today, SAMBA is a listed company on the Ghana Stock Exchange under the GAX, the alternative listing arrangement of the GSE. We were the first SME to be listed on GSE which I take as a particular accomplishment as we are female-owned.
The ultimate objective of SAMBA is to have a food processing emporium, with the fortification of our staple foods with micro-nutrients, vitamins and mineral substances.
With the installation of new automated groundnut processing plant, we hope to take care of and eliminate micronutrients deficiency syndrome in children and pregnant and lactating women.
Read Samba's GAX company prospectus here.
Number of employees: 34
Date of Listing: 11 August 2015
Listing category: Equity
Initial share price: GHC 0.05
Current share price: GHC 0.10
Value of company public ownership: GHC 11 490 000
HORDS stands for HAROLD OTABIL RESEARCH AND DEVELOPMENTS SYSTEMS. It is a wholly Ghanaian indigenous company, set up in 1999 but incorporated in 2000 by Harold Otabil as a private limited liability Company to research, develop and Produce Cereals, Detergents and other food supplements in Ghana. The products add value to transform raw material such as cocoa, cassava, soya, starch and herbs into breakfast cereals and other food supplements.
During the past 15 years, HORDS has focused on researching products and has launched Brown Gold – a cocoa based powder drink, Soyabetix – soya based health supplement for diabetics, and Cocobetix – a Cocoa based variety of the diabetic health supplement and Veetamax – a cocoa based supplement for improving immune systems and energy; as flagship brands to the market.
It was converted into a public limited liability company in 2015 after the decision of the Sole shareholder and Board to go public to raise funds for the operations of the Company and subsequently list on the GAX.
After a successful IPO where the company raised a total of GHC4million, HORDS was listed on the Ghana Alternative Exchange (GAX) on the 11th of August, 2015 after approval from the Securities & Exchange Commission and the GAX Committee. A total of 114million shares were listed on the GAX.
A decision was made by the then sole shareholder of HORDS Limited, Harold Otabil to raise funds through the Ghana Alternative Exchange after being convinced by Sydney Casely-Hayford that it was worth trying. At this point, the shareholder had to understand the need to open up the company to public scrutiny, implications of bringing new shareholders on board, change in the status of the company and even its image etc. the Board also had to be reconstituted to ensure that requirements of the Securities & Exchange Commission was met.
Gold Coast Brokerage was appointed as the Lead Manager and Sponsoring Broker, Andah & Andah was appointed as the Reviewing Accountants and Zoe Lexfields appointed as Legal Advisors to the Issue. Sydney Casely-Hayford acted as Financial Advisor to HORDS.
The amount of capital to raised, the purpose of the fund raising, the costs of the fund raising etc. were all discussed with the relevant persons (shareholder, Board, Lead Manager etc.) and approved.
As a result of the decision to raise funds through an IPO, the company’s status had to change from a private limited liability company to a public limited liability company and this was also done.
Due diligence work was undertaken (legal, financial etc.) and when this was completed, it was discussed with the then sole shareholder and the board of HORDS. Valuation and pricing of the shares to be issued were also completed and discussed after which a prospectus was developed. The required documents were filed with both the Securities & Exchange Commission (SEC) and the Ghana Alternative Exchange (GAX Committee). Some of the documents filed included the prospectus, underwriting agreements, escrow agreement, company incorporation documents, board resolutions etc.
Further the company had to get clearance from the Ghana Revenue Authority (GRA) and the Social Security & National Insurance Trust (SSNIT) as part of the process.
After all the corrections and amendments were effected and the timetable for the Initial Public Offering (IPO) approved by the SEC, the IPO was launched and run for a period of a month. Posters, fliers, adverts were developed by DigiCut (an advertising company) with information on the HORDS IPO. We used Daily Guide, TODAY Newspaper, and the Daily Graphic to advertise. The company raised GHC4million at an IPO price of GHC 0.05.
The company was officially admitted and listed on the Ghana Alternative Exchange of the Ghana Stock Exchange after all approvals had been granted on the 11th of August, 2015.
Some of the challenges included getting accurate data/information and on time. There were also challenges with the valuation of the company
HORDS has focused on researching its products and has launched Brown Gold, Soyabetix, Cocobetix, and Spray Starch as flagship brands to the market.
Read Hords' GAX company prospectus here.
Subsidiaries: Meridian Pre-University (MPU); Marshalls College (Marshalls)
Number of employees: 44
Date of Listing: July 2015
Listing category: Equity
Initial share price: GHC 0.10
Current share price: GHC 0.11
Value of company public ownership: 25 percent
Current net worth: GHC 4,386,551
Meridian Pre-University (MPU) a subsidiary of Meridian-Marshalls Holdings started on August 1st 2007 in a very small rundown conference room of a hotel. Meridian Pre-University is The Nation’s Premier Pre-University. That notwithstanding, Meridian Pre-University has grown to produce a post-secondary institution called Marshalls College.
As indicated, Meridian Pre-University was the first of the schools to be set up, purposefully to offer nationally and internationally recognised certificate and diploma courses for fresh WASSCE graduates and mature students. The course modules offered by Meridian Pre-University gives successful graduates the opportunity to enter into university at either first or second year and at the same time gives them an edge over their peers, considering the fact that these graduates from Meridian Pre-University also obtain a diploma qualification after their period of study with us.
Since its inception, Meridian Pre-University has successfully graduated over four thousand (4000) students, most of whom have gained admission into other private and public universities in Ghana and abroad.
Following the success of the Pre-University, the Board of Governors decided to run a University College concurrent to the operations of Meridian Pre-University. The decision was influenced by feedback received from graduates of MPU who were enrolled in other universities. Marshalls was therefore created to provide quality, practical and affordable tertiary education for post-WASSCE students. The College was incorporated in 2010 and is affiliated to the University of Cape Coast. It started its operations in 2013 after receiving accreditation from the National Accreditation Board.
In its preparation to become a major player on the educational industry in Ghana and a world-class university in Africa in the next eight years, the institution has acquired prime properties in Accra, and recently a 110 acres lakefront property on the Volta Lake at Akosombo in the Eastern Region Ghana.
The school intends to put up a world class and a multi purpose campus made up of administration blocks, lecture halls, laboratories, staff residences, hostels, sports complex (outdoor & indoor), open air study areas, a lighthouse building (to give direction to the fishermen on the lake and to serve as a public library), a clubhouse for our junior and senior members, a health center, a hotel, open air theaters, a commercial area, and enough green spaces for future academics expansions. The institution is determined to create this ecosystem in a green and sustainable developmental way. Also, the management of the institution wants this campus double as an ICT hub for West Africa.
The achievements of MMH have not been without struggles. There were moments of massive loss of students due to bad press on matters that were later found not to be exactly the case. With the resilience of management, the institution has always found innovative and new ways of coming back into business. One of such initiatives was the listing on the alternative investment market of the Ghana Stock Exchange - GAX.
Meridian-Marshalls Holdings was incorporated under the Companies Code, 1963 as a limited liability company on February 26, 2013. The company took over the entire shareholding of Meridian Pre-University and Marshalls College. Meridian–Marshalls Holdings offers recent high school graduates and working adults degree and diploma programmes.
We were not able to sell all the shares we intended for the market during the initial public offer (IPO) due to the economic crunch at the time, coupled with the fact that there is little public knowledge about the workings of the stock exchange. Also MMH is the first educational stock to be floated on the exchange, the investing public were not sure how well it would perform on the market. Due to some of these challenges, we were about 75 percent successful.
The Journey to the GAX started in December 2012. Our founder and first president, Dr. Tetteh Nettey, in the 1990s took some courses at the Ghana Stock Exchange with the aim of becoming a licensed broker. Although he changed his mind about becoming a broker, the knowledge he acquired helped him in coming to the quick decision to list MMH on the GAX as soon as to opportunity came.
Besides, the journey was taken because the institutions found the need to expand by building major infrastructural facility for the teaching and learning discourse to go on smoothly; develop our human capital (faculty and administrative staff) and equip our studios and laboratories. We realised it would not be possible, in the short term, to do so through tuition fees and other charges. Besides, we understood what it meant to be listed on a stock exchange - the level of integrity that is required, the benefits and the transparency that is associated with it.
Throughout 2013 and 2014 and also part of 2015 several discussions with regards to corporate governance, financial accountability, the quality of management, revenue sources had to be discussed and ascertained and myriad of documents were submitted to the Securities and Exchange Commission (SEC) and The Ghana Stock Exchange (GSE) through our advisors Cal Brokers. Cal Brokers were the lead managers and it was their responsibility to ensure to the success of the IPO. They were the institution liaising between MMH, the GSE and the SEC to ensure the whole process of listing. They ensured all the requirements of the GSE and SEC were met. They also managed the content of the prospectus and were underwriters of 25% of the expected funds to be raised. The regulators were interested particularly in tax, social security, the legal status of the institution, the governance structure, and the organisational and internal control effectiveness of the institution. Lawfields Consulting were our Legal Advisors who ensured compliance with applicable laws and regulations. VT Consult acted as the reporting Accountants for SEC.
The fees for the consultants though were paid in advance by GSE to Lawfields and VT Consults, it was pretty high for a company that is actually seeking for funds to run her business. This money was not free cash. It was deducted from the money that would be raised at the end of the day. This makes it a challenge for the listing company if it is not able to raise enough to take care of his expenses.
The process was particularly stringent due to the fact that all regulatory requirements need to be met. There were several meetings and audits done including background checks of the directors. The marketing of the shares was also a challenging task. Choosing the right brokers is central to the success of the process. SEC was so considerate to waive their legal charges and GSE assisted with the initial floating expenses.
Our main challenge during the process was the several documents that we had to submit to the exchange and the regulator. In all we submitted about twenty-nine legal documents. The documents included Registrar General’s Department (RGD’s) confirmation of change of ownership, certificates of incorporation, minutes of board meetings, land certificates, organograms, certificate of commercial insurance, financial statements, special resolutions, appointment letters, and acceptance letters. The acquisition of some of the documents from the various government agencies was in most times daunting. Some of the documents needed to be obtained from government offices and due to their bureaucratic nature the processes were slow and fraught with bottlenecks. In most cases we just had to do constant follow-ups before getting hold of our documents.
We are also collaborating with Stanford University’s Institute for Innovation in Developing Economies (Stanford SEED) to strength our internal systems. This is Stanford’s initiative intending to end the cycle of poverty in developing countries. Through this initiative Marshalls’ lecturers and staff will work closely with experts from Stanford University to develop innovative ways to strengthen teaching and administration in order to position Marshalls as a world class university.
MMH is the first educational institution to be listed on a stock exchange in Africa beside South Africa. This was achieved with the attendant legal and financial due diligence coupled with the tonnes of paperwork and the discipline of teamwork and meeting of deadlines.
Our listing on the GSE made MMH probably one of the most regulated institutions in Ghana and we love it.
MMH has been doing extraordinary well in sports.
We have been able to come out with our own online radio called Marshalls Online Radio (MOR) and our own e-learning and testing platform, a feat not common in Ghana.
Considering how young the institution is, we are delighted about these achievements but we are not resting on our oars. We are confident that next year we would have a lot more awards to report on.
Read Meridian Marshalls Holding’s GAX company prospectus here.
Industry: Financial services
No. of employees: 361 permanent staff; 900+ commission based employees
Date of listing: 8 January 2016
Listing category: Debt
Current net worth: GHC 99,000,000
Bayport Financial Services Ghana PLC Limited (BFSG Plc.) was incorporated under the Companies Act as a private limited liability company on 23 October 2002 as Ghana Financial Services Limited. It changed its name from Ghana Financial Services Limited to Bayport Financial Services Ghana Limited on 5 March 2009.
On 11 June 2009, BFSG Plc. was licensed by the Bank of Ghana as a non-bank financial institution (NBFI) to operate as a finance house. The license was made under the Financial Institutions (Non-Banking) Law, 1993 which was replaced by the Non-Bank Financial Institutions Act, 2008 (NBFI Act). The NBFI Act subjected the regulation of finance houses (among others) to the Banking Act. BFSG Plc. is therefore subject to the Banking Act and the applicable notices and guidelines issued by the Bank of Ghana from time to time.
BFSG Plc. was converted into a public limited liability company by a special resolution of its shareholders on 26 October 2015. The registered address of BFSG Plc. is:- No. 71 Osu Badu Street, Airport West in Accra, PMB 248, Accra-North, Accra Ghana. Its telephone number is +233 (0) 302 745 454. The company’s registration number is CS691702015. Currently, BFSG Plc. has three hundred and sixty-one (361) permanent employees and over nine hundred (900) staff who are on commission.
BFSG Plc. is a subsidiary of Bayport Management Limited (BML) which is registered in Mauritius. Other subsidiaries of BML are in Botswana, Colombia, Mexico, Mozambique, South Africa, Tanzania, Uganda and Zambia.
BFSG Plc. is one of Ghana’s largest NBFIs, engaged primarily in salary deduction based lending. It has been operating in Ghana since 2003 and has thirty-two branches across the country with a significant presence in every regional capital. The company currently has a customer base in excess of a hundred and twenty thousand (120,000) individuals and a lending portfolio of two hundred and forty-five million Ghana Cedis (GHS245,000,000).
The company was listed on the Ghana Alternative Market (GAX) of the Ghana Stock Exchange on 8 January 2016 with a program amount of up to two hundred million Ghana Cedis (GHS200,000,000).
Since 2014, BFSG Plc. had been preparing to list on the stock exchange mainly because the company was growing and funding sources were becoming inadequate for its needs. The main challenge was bringing together various third parties that were needed to assist for a successful listing.
Eventually, BFSG Plc. came up with the following:-
|STANBIC BANK||LEAD ARRANGER|
|FIDELITY BANK||NOTE TRUSTEE|
|BENTSI-ENCHILL, LETSA & ANKOMAH||GHANAIAN LEGAL ADVISER|
|ENS AFRICA||FOREIGN LEGAL ADVISER|
|ERNST & YOUNG (EY)||REPORTING ACCOUNTANTS|
Read Bayport’s GAX company prospectus here.
Industry: Pharmaceutical Manufacturing
Number of employees: 200+
Date of Listing: 15 December 2015
Listing category: Equity
Initial share price: GHC 0.08
Current share price: GHC 0.09
Value of company public ownership: GHC 20,395,912. 14
Current net worth: GHC 6,524,725. 00
Intravenous Infusions Limited (IIL) was established in 1974 as a wholly-owned Limited Liability Ghanaian Company. Its objects are the Production and marketing of Pharmaceutical Products, principally, Intravenous Infusions and Small Volume Injections. It was the first of its kind in West Africa. By the nature of its life saving products, the Company plays a strategic role in the health delivery programmes of not only the Ghana Ministry of Health, but also all the Private Hospitals as well as Health sectors of Institutions like the Ghana Armed Forces, Police Service and Mission Hospitals. The Company also exports its products to Burkina Faso, La Cote d’Ivoire, Togo, Benin and lately Nigeria.
The Company which is located in Koforidua, is one of the largest Private Sector Employers in the Eastern Region, with a staff strength of over 200 employees. Its Management Team comprises Pharmaceutical, Finance, Marketing, Human Resource, Engineering and Science-based professionals.
Products and Research/Development
The Company has over the past forty (40) years mastered the art of manufacturing IV Fluids and Infusion Giving Sets. IIL was initially producing 900,000 units of IV Fluids when it started operations in 1974. IIL currently employs modern computer controlled water treatment and autoclaving systems and has increased its capacity to over 6million bags of IV Fluids, on a single shift basis, per annum.
IIL has collaborated over the years with the University of Ghana Medical School to pioneer the production of special IV Lines to meet the health delivery needs in Ghana and the sub Region of West Africa. Some of these products are:
IIL also collaborates with the college of Pharmacy of Kwame Nkrumah University of Science and Technology (KNUST).
Additionally, it is the only Company that produces Small Volume Injectables in the Ghana and in the sub Region. These include Quinine and Magnesium Sulphate Injections.
Path to the Stock Exchange
After forty (40) years of operating as a Private Limited Liability Company, the Directors of the Company decided to pursue listing on the Ghana Alternative Market (GAX) even though the Company qualified for listing on the main Exchange, the Ghana Stock Exchange.
Although this decision meant the Company was abandoning the stability of the well known Index (GSE) for the fledging GAX, there were several benefits to be derived from the decision. These benefits include:
IIL completed its listing on the GAX in December, 2015 by the introduction of 132million Ordinary Shares and Offer for subscription of 153million shares at a price of GP8 (Eight Ghana Pesewas) per share, to raise a total amount of GH¢12.3million. The proceeds were meant to fund IIL’s its Capital Expenditure, Retooling of the Factory, improvement in its Working Capital as well as diversifying its product portfolio to include fast-moving over-the-counter medications such as Analgesics, Cough Preparations and Antacid Suspensions. With the listing on the GAX, the Company expects to increase its annual production level from 6million bags to 10million within the next two (2) years on a single shift basis.
This means that Intravenous Infusions Ltd. (IIL) will be positioned to increase production to a double shift system of 20million bags per annum based on demand from the market.
The Listing Process
Company started the listing process in February, 2014 after a Board Resolution was passed to legitimize the action. Following an application from First Atlantic Brokers Ltd. (FABL), they were appointed as the Transaction Leader and Sponsoring Broker. After a period of one year of Due Diligence and Advisory Services, FABL reneged on its responsibility to provide the stipulated 25% guarantee of the amount to be raised, in spite of having signed an Underwriting Agreement to that effect. This led to the abrogation of the contract between IIL and FABL. This non-performance by FABL set us back by over twelve (12) months. This matter was reported to the Regulator, the Security and Exchange Commission who determined that FABL was at fault and caused them to refund all fees etc. to IIL, at the peril of having their licensed revoked. IIL therefore started the process with a new set of Advisors to the Listing Transaction in March, 2015.
The following Companies constituted the set of Advisors employed by IIL to restart the process:
|Commencement of Offer Period||14th October, 2015||9:00 am|
|End of Offer Period||25th November, 2015||5:00pm|
|Application Forms review for allotment commences||26th November, 2015||9:00 am|
|End of allotment and submission of results to the SEC||30th November, 2015||5:00pm|
|Credit IIL Shares to successful applicants||2nd December, 2015||5:00pm|
|Commence dispatching letters to successful applicants||3rd December, 2015||9:00 am|
|Refunds to unsuccessful applicants||9th December, 2015||5:00pm|
|Listing of all IIL Shares, First day of trading on GSE||15th December, 2015||10:00 am|
|Initial Public Offer Price||GH¢0.08|
|Number of Ordinary Shares in the Initial Public Offer; (New Shares)||153,307,500|
|Number of Ordinary Shares in the Initial Public Offer; (Existing Shares)||132,322,149*|
|Total Issued Shares post-offer||285,629,649|
|Proceeds of the Offer receivable by the Company||GH¢12,264,600|
*Existing Shares were listed on the GAX of the GSE by way of introduction.
In addition to the Advisory Services, IIL appointed several Brokerage Houses and Banks as Receiving Agents for the sale of Shares.
Furthermore, there were other costs associated with the listing process.
These included, but not limited to:
The Company successfully listed on the GAX on December 15, 2015 and started trading on the Exchange. IIL was able to raise 62% of the equity targeted. At the Company’s next Annual General Meeting, Directors will seek the mandate of Shareholders to sell unsubscribed shares during the IPO to existing Shareholders or through a Private Placement.
Post Offer Inspection
The Regulator, the SEC has conducted a Post-offer inspection to ascertain the following:
Normally, SEC will also be interested in:
Effective Corporate Governance is therefore of utmost importance both at pre and post IPO stages to be able to meet the regulatory obligations of both the SEC and GSE.
Read Intravenous Infusions' GAX company prospectus here.
Industry: Financial Services
Established: October, 2010
Number of employees: 119 Employees, 400 sales agents
Date of Listing: November, 2014
Listing category: Debt
Current net worth: GHC 17,500,000.00
Izwe Loans Limited was registered in Ghana at the Registrar General’s Department on 4 October 2010 and began trading on 1 July 2011. The company is licensed and regulated by the Bank of Ghana. Within four years Izwe has grown into one of the largest NBFI’s in Ghana with a gross advances book of GHS 126 million at the end of 2015 and a retail deposit base of over GHS 60 million. We have 119 employees,400 sales agents, a network of Eight(8) branches across all regions in Ghana and we have a call center located at the head office.
The principal business of Izwe Ghana is the provision of short to medium-term loans as well as life insurance and savings for our clients. Izwe uses a combination of retail branches and sales contractors to originate loans, insurance policies and savings in all corners of Ghana. Our key strength is identifying suitable locations that are strategically located for the target market. The company is able to attract and retain top sales contractors and effectively manage and motivate them.
Premiums and instalments are collected via payroll deduction directly from the client’s salary. In Ghana, this function is carried out by the Controller and Accountant General’s Department (CAGD) for civil servants and the payroll department of the Police Service. Bank direct debit collections, third party debt collection agencies and an in-house call centre are used as alternative collection measures in the event of a default. Collections and arrears management are a particular strength of the Izwe operations team.
Izwe is proud to have one of the best collection performances in the industry and is very proactive with regard to managing payroll collections and arrears management. Izwe operates on an established debtor management platform, which has undergone significant developments to enhance and automate the collection and receipting functions, and to generate exceptionally accurate and detailed reports.
The following are the general characteristics of our business:
Complementary Financial Products
Life Insurance Product
The Izwe in-country branches (retail and mobile sales contractors) will be responsible for driving sales and the origination of membership applications.
Expanding Customer Channels
Izwe Loans formally listed its 80m corporate note programme on the GAX in November, 2014 after receiving approval from Bank of Ghana and Securities and Exchange Commission (SEC). Our corporate note programme was the first to be listed on GAX. We currently have 147 different investors/portfolios holding notes. We must also mention that all notes have been well received by investors.
The note programme became necessary because we wanted to secure local currency financing in order to continue to grow our business at a steady and consistent pace whilst appropriately balancing the local currency to foreign currency risk profile. As at the end of 2015, Izwe Loans had eliminated all forex losses and this increased our interest margins.
Read Izwe Loans' GAX company prospectus here.
Industry: Financial services
Established: September 2010
No. of Employees: 273 employees, 400 sales agents
Date of listing: 22 July 2015
Listing category: Debt
Current net worth GHC 31,000,000
See Abridged Audited Results for Year Ended 31 December 2015
afb commenced its operations in Ghana in September 2010 and has witnessed a steady growth in operations. Today we have 273 employees, 400 sales agents and a network of 23 branches across all regions of Ghana.
afb (Ghana) offers innovative retail finance solutions to the staff of Ghana Armed Forces, Ghana Police and all Government employees. We also have contracted reputable organizations like the Volta River Authority, Ghana Water Company, Ghana Publishing Company, AngloGold Ashanti and Bibiani Noble Gold whose staff enjoy our products.
afb (Ghana) is the flagship subsidiary of the leading Multi-national retail finance group JUMO WORLD, with its Head Office in Mauritius.
afb is the fastest growing consumer finance company in Africa with a market capitalization of over 100 million USD. The group has over 1 million customers across the continent with presence in Rwanda, Uganda, Zambia, Tanzania and Kenya.
Payroll Loans - afb majors in responsible payroll lending with speed (Loans in less than thirty minutes). We determine affordability based on proven income and use proprietary methodology to set lending levels together with the individual borrower. Repayments are made directly from the employer at a payroll level and ability to repay is continually monitored with the employer.
Our competitive payroll loans range from Three months to Thirty six Months for repayment.
Unsecured Loans (Smartcash) - On the back of our established and successful payroll lending operations, we have developed retail credit solutions for merchants operating in Ghana.
The Smartcash is one of our unsecured products targeted at retailers.
The product module starts with a loan facility of GHC 200.00 to GHC 5,000.00.
The repayment term for the unsecured loans ranges from 1 month to 3 months.
afb Direct is a fast loan for all salaried workers (private and public), who have their salaries paid into a CURRENT bank account.
afb is dedicated to protecting our customers as well as their family. Our strategic alliance with Enterprise Life Assurance Company Limited (Elac) puts us in a well-built stand or position to cover our payroll loans with a life insurance policy. This insurance covers for all the purposes of which our clients took the loan.
In other to further deepen our presence in the market and relationship with our customers, we have introduced an afb Reward Gold card for our customers.
afb Reward Gold card will give all afb customers immediate discounts at Melcom stores, Pioneer Ghana Limited, Palace Hyper Market and Electroland Ghana Limited - Samsung.
It also provides a free life insurance cover of GHC 2000 in the tragic event of a card holder’s death.
afb has plans in introducing more cards in the near future to the benefit of our customers.
afb (Ghana) PLC got the nod of the Bank of Ghana and Securities and Exchange Commission’s (SEC) to go ahead and offer GAX corporate bonds to the investing public.
This move was influenced by the need to redeem all foreign denominated liabilities, thereby eliminating all foreign currency risks for the business and to use the proceeds of the bond issuance to restructure its balance sheet and expand its operations.
In July, 2015 afb officially listed its bond on the Ghana Stock Exchange (GSE). afb (Ghana) raised GHS 38 million by offering bonds of GHS 30 million. The issue which received long term ‘investment grade’ rating of ‘BBB’ from GCR (Global Credit Rating) company was over-subscribed by 30%.
One year down the line, we realized an improvement in profit before tax by 100% and the focus for 2016 and beyond will be on Balance Sheet growth and profitability.
On 25th February 2016, the company took its turn at the Ghana Stock Exchange (GSE) “facts behind the figures” session to address investors on its financial performance for the 2015 financial year.
One of the major challenges confronting financial institutions looking to list corporate bonds on the Ghana Alternative Exchange (GAX) of Ghana Stock Exchange is the timing of approval from regulatory authorities.
Regulatory authorities go through a rigorous and extensive process prior to issuing approval to financial institutions to list corporate bonds on the Ghana Alternative Market. This is because the bond market and GAX are unchartered areas as far as the capital market in Ghana is concerned.
afb did not encounter much challenges with the investor community as its institutional transparency, depth of management and robust systems were quite known under its unlisted bond program.
The company underwent a rigorous assessment to secure a rating for its bond from the Global Rating Agency. This further strengthened its standing and reputation in the investment industry.
See afb’s GAX company prospectus here.