Samba Foods Goes To GAX

Samba Foods Limited, an indigenous food and spicy processing company, has launched an Initial Public Offering (IPO) to raise GH¢2.5 million to acquire equipment and expand its production base.

The company is offering 3,475,453 shares to the general public at GH¢0.72 per share in an offer that will run from February 23 to March 13, 2015.

Unisecurities Ghana Limited and SIC-Brokerage Limited have both reiterated their commitment to underwrite a combined 50 percent minimum of the amount to be raised under the share offer.

On the successful completion of the offer, the company would then list the shares on the Ghana Alternative market, set up to attract Small and Medium-scale Enterprises (SMEs) to the stock exchange.

Leticia Osafo-Addo, Chief Executive Officer (CEO) Samba Foods, said the company is seeking to enhance production of packaged foods in the domestic market and to also raise capacity to tap into a broader market by exporting its products to other West African countries.

She said the funds from the offer would enable the company to acquire equipment, expand existing infrastructure to enable it to leverage on its advantage and introduce three new products this year to diversify its products mix to include processed fruits and pastries.

Currently, the company has an agreement with Masco Foods, the sole franchise holder of KFC brand in Ghana to supply a quantity of the KFC pepper sauce on a monthly basis, providing a steady revenue stream for the company.

Kofi Yamoah, the Managing Director Ghana Stock Exchange (GSE), said the Ghana Alternative Market is a new market platform for SMEs with high growth potentials.

He said it was aimed at accommodating companies at various stages of development, including start-ups and existing enterprises, both small and medium.

He said the GAX-SME Listing Support Fund, set up with initial contributions from Ghana Venture Capital Trust Fund and GSE has accrued GH¢670,000, out of which GH¢343,000 is being used to support the cost of raising capital for three companies to be listed.

He said that the enlisted companies would enjoy an initial public offer financing and underwriting directly or indirectly by the sponsor.

Businesses must have a minimum stated capital of GH¢250,000 at the time of listing and at least 20 shareholders at the time of the public float, he said.

Samba Foods Limited is a wholly-Ghanaian owned indigenous food processing and preservation business, specialising in the condiments and seasoning and was incorporated in September 1993.

– GNA


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