A company is said to be listed when its securities are approved to be bought and sold on the Stock Exchange. Newly issued shares cannot trade in the Over-The-Counter (OTC) Market before getting listed on the Ghana Stock Exchange (GSE). You need to communicate this intention to the GSE and work with the Exchange’s listing requirements before the public floatation.
Required:
Identify and explain THREE requirements a company is expected to meet before it gets listed on the Ghana Stock Exchange. (3 marks)
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- Minimum Stated Capital: It must have a stated capital after the public floatation of at least GH¢1million in the case of an application relating to the First Official List and GHc0.25 million for the Ghana Alternative Market (GAX).
- Minimum Public Float: Shares issued to the public must not be less than twenty-five per cent (25%) of the number of issued shares of the company.
- Payment of Shares: Shares must be fully paid for: Except in very exceptional circumstances, the Exchange will refuse listing in respect of partly paid shares.
- Spread of Shares: The spread of shareholders existing at the close of an offer should be in the GSE’s opinion adequate with at least 100 shareholders after the public offer for the Main Board and 20 for the Ghana Alternative Market (GAX).