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Aluworks seeks to raise GH¢30m in Rights Issue

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Aluworks Ltd, a 25-year-old private company and major producer of aluminium casting and cold mill company in Ghana has launched a Rights Issue to raise GH¢30 million to recapitalize.

The only aluminium casting company in Ghana to be listed on the Ghana Stock Exchange, Aluworks’ average return on Equity stood at 21.86% since 1996, the Managing Director, A. W. Q. Barnor has said.

He told a press conference in Accra Monday March 15, 2010 that the country’s energy crises have brought some operational challenges to its operations, because its main supply the Volta Aluminium Company (VALCO) has been forced to close down as a result. The company has been relying on foreign exports since VALCO’s closure at great expense.

He said the Board of the company decided on the Rights Issue to raise funds to reposition the company for profitability.

According to Mr. Barnor, Aluworks is offering 75 million ordinary shares of no par value at Forty Ghana pesewas (GH¢0.40) per share in the ratio of nine new shares fro every five existing shares. This he said, represents a 9% discount off the current market price of Forty-four Ghana pesewas (GH¢0.44), signifying a total growth of more than 225% over its listing price.

The offer he added, is open to both shareholders and non-shareholders of Aluworks, resident and non-resident Ghanaians and foreigners as well.

He announced that the offer begins Monday March 15, 2010 and ends at 5pm Friday April 16, 2010. Trading in the rights he said begins same day with the approval of the Ghana Stock Exchange.

The manager and sponsoring broker is the NTHC Securities Ltd.

By Emmanuel K. Dogbevi

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