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Meridian-Marshalls launches IPO to raise GH¢2.5m

Meridian-Marshalls launches IPO to raise GH¢2.5m

The Meridian-Marshalls Holdings Company (MMH) intends to raise GHC2.5 million from the Ghana Alternative Market (GAX) on the Ghana Stock Exchange (GSE).

It intends to raise this capital by selling 25 million new ordinary shares at GHc 0.10 per share.

The existing shareholders currently hold 75 million shares, representing 100 per cent ownership, and the subscription of issued shares will dilute the existing ownership by 25 per cent.

This was revealed at the launch of the Initial Public Offer (IPO) of MMH on April 22, 2015, in Accra.

MMH became the first educational institution to list its total outstanding shares on the GAX and it did so by engaging CAL Brokers Limited (CBL) to act as lead manager and sponsoring broker for the listing exercise.

The Executive Director of MMH, Dr Tetteh Nettey, said the listing became necessary in order to achieve the future plans that had been outlined by the company in terms of expansion and delivery of quality education.

He said the shareholders had invested heavily in the acquisition of some key assets needed for the purpose and the amount of GHc 2.5 million was required to be injected into the activities of the company.

According to him, the amount would be used as working capital, construction of a multi-purpose classroom, and flotation expenses.

He mentioned that the Meridian Pre-University (MPU), which is Ghana’s first pre-university, had successfully graduated over four thousand students, most of whom had gained admission into both public and private universities in Ghana and abroad. GB

He said Marshalls University College on the other hand was established by MMH following the success of MPU to provide quality, practical and affordable tertiary education for deserving students.

“In line with our vision, the operational infrastructure of MMH subsidiaries have been designed to be highly flexible and to enable the managers, faculty and students of the institution to adapt quickly to changing market trends,” he said.

The Director General of the Securities and Exchange Commission, Dr Adu Anane Antwi, also encouraged other Small and Medium Enterprises to learn from MMH by sourcing for funds from the public in order to develop and expand.

“You cannot grow your business if you want to hold it to yourself,” he said.

He called on entrepreneurs to also embrace the capital market, saying they could not continue to finance their long-term projects with short-term capital.

Dr Anane Antwi also mentioned that SEC was working to bring lots of products and services to the market.

He said it was talking to the utility service providers and real estate developers to come unto the capital market to source funds to expand.

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