Comet Properties Limited, a wholly owned Ghanaian real estate company, yesterday launched its Initial Public Offer (IPO), in Accra to raise fund for long-term expansion projects.
\nThe company is offering to the investing public 61,823,968 shares of no par value for subscription at a price of GH\u00a21.00 per share. The share is made up of 54,095,972 new shares to be issued from authorised shares, and 7,727,996 ordinary shares being offered by existing shareholders.
\nThe 54,095,972 new shares are anticipated to increase the issued shares outstanding from 154,559,920 to 208,655,892. The new shareholders would hold 30 per cent of the company\u2019s post flotation shares.
\nThe company expects to raise GH\u00a261,823,968 from the proceeds of this offer which began yesterday December 30, 2010 and ends on January 31, 2011.
\nOf this amount, the prospectus said, GH\u00a27,727,996, representing 12.5 per cent would go to its current shareholder being 7,727,996 shares offered for sale in the IPO.
\nThe remaining GH\u00a254,095,972 being proceeds from new shares to be issued under the offer would be used for the expansion of the company\u2019s operations.
\n\u201cIt will be used to establish downstream operations for the production of plastic T&G for ceiling and paneling, aggregate stone, expansion of the company\u2019s wood processing facility and its aluminium fabrication plant,\u201d the prospectus stated, projecting a dividend payout of 30 per cent per annum.
\nIt further noted that part of the GH\u00a254,095,972 would be used to construct 1,000 residential houses during the plan period as well as low cost high-rise buildings for workers.
\nComet Properties is a real estate development company that was established in 2002 with the primary objective of constructing and delivering property market, functional and comfortable houses in the country.
\nThe company has since developed and delivered to customers, several houses on its maiden 2,000 acre Hillside Housing Estate Project at Brekuso near the Ashongman Housing Estates in Accra.
\nIt is a member of the Ghana Real Estates Developers Association (GREDA). In its maiden entry into the prestigious Ghana Club 100, the company placed 47 in the over all rankings and first in the Real Estates Industry category.
\nOver the years, Comet has registered impressive growth with its gross profit averaging 107 percent per annum from 2005 to 2007.
\nIn 2008, which was a challenging year, the company\u2019s turnover was GH\u00a219.34 million, representing an increase of six percent over the previous year of GH\u00a218.27 million. Additionally, profit after tax increased from GH\u00a2661,109 in 2005 to GH\u00a2758,311 in 2006.
\nThe company\u2019s profit increased to GH\u00a21.83 million in 2007 and subsequently to GH\u00a22.66 million in 2008.
\nIn September 2006, Comet, by a special resolution, converted from a private company to a public limited liability company, adopting amended regulations of a public company in its quest to open up shareholding to the larger investing public.
\nComet would thus become the first real estate company to list on the Ghana Stock Exchange.
\nNana Odeneho Kyeremanten, the Executive Chairman of Comet Properties, was full of excitement for the new direction of his outfit.
\n\u201cWe want to take on the discipline of the market place to earn greater reputation and to be able to access greater capital to improve our housing delivery.\u201d
\nKofi Yamoah, Managing Director of the GSE, commenting on the provisional listing of the company said: \u201cWe at the GSE are delighted to have Comet Properties Limited, which is a wholly owned Ghanaian real estate company.\u201d
\nIt would add to the diversity of companies that are represented on the market, he added.<\/p>\n","protected":false},"excerpt":{"rendered":"
Comet Properties Limited, a wholly owned Ghanaian real estate company, yesterday launched its Initial Public Offer (IPO), in Accra to raise fund for long-term expansion projects. The company is offering to the investing public 61,823,968 shares of no par value for subscription at a price of GH\u00a21.00 per share. The share is made up of […]<\/p>\n","protected":false},"author":0,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[],"tags":[],"class_list":["post-272694","post","type-post","status-publish","format-standard"],"yoast_head":"\n