The Ghana Stock Exchange (GSE) will in March 2013 create a new market platform for businesses with growth potentials to raise capital and trade their shares.
Dubbed the Ghana Alternative Market (GAX), the GSE would give priority to start up businesses, existing companies and small to medium scale entrepreneurs which are productive and unable to meet the rigorous requirement for listing on the main board.
Mr Ekow Afedzie, Deputy Managing Director of GSE, who announced this on Wednesday to members of the Institute of Financial and Economic Journalists at a workshop organized by the Security and Exchange Commission (SEC) in Accra.
Mr Afedzie said GSE would set up a revolving fund to support the cost of raising capital for the companies who would be enlisted.
He added that currently Fidelity Capital Partners Limited, Ghana Venture Capital Trust Fund and the African Development Bank, had expressed their commitment as partners and would make available about one million dollars to support the companies meet their cost in raising capital.
Mr Afedzie said that the enlisted companies would enjoy an initial public offer financing and underwriting.
He said beginning next year, GSE would embark on a pursuit of listing on the Accra Bourse in a more aggressive manner to increase the depth and breadth of the market.
Mr Afedzie was optimistic that GSE would sign up more than 50 companies.
He said the bond market would be developed in a manner that made room for more longer instruments to be rolled out to improve the secondary market.
Mr Afedzie said the GSE was committed towards positioning the exchange as an attractive investment avenue to improve liquidity.
Mr Adu Anane Antwi, Director-General of SEC, said his outfit had embarked on a five-year strategic plan to restructure the Commission to make it “more forward looking”.
He said the Commission had approved regulations for the establishment of an alternative investment.
Mr Antwi said SEC was developing regulations for real estate investment funds.
He said the Commission had installed Automated Surveillance System and web portals to improve real-time surveillance of the market.
Mr Antwi added that the Commission was working towards the integration of West Africa capital market.
He underscored the importance of public education on issues affecting the market to ensure greater financial inclusion, adding that the role of journalists in stepping up such education was critical.