Business News of Wednesday, 11 April 2018
The media production and advertising wing of the Groupe Nduom (GN), Digicut Production & Advertising Limited, has successfully raised some GH¢2.85 million through an initial public offer (IPO) that ended on March 23 this year.
The amount was raised through the sale of some 118 million shares to existing and new shareholders, Mr Benjamin Afreh, one of the brokers at Gold Coast Securities who oversaw the IPO told Graphic Online.
He said 83 million shares were sold to existing shareholders while 35 million went to new investors.
By raising GH¢2.85 million, Digicut has met its target for the IPO, thereby making the offer a success.
Each share was sold for eight pesewas.
The success of the IPO makes it possible for Digicut to be listed on the Ghana Alternative Market (GAX) as the first media firm.
The company’s shares are due to be listed on the GAX, a smaller version of the Ghana Stock Exchange (GSE) meant for small and medium enterprises (SMEs), later today for trading to commence.
A circular from the GSE said some 277 valid applications were received within the 23-day period that the IPO lasted.
The IPO was meant to offer the company to the general public and in the process, raise funds for expansion, managers of Digicut said at the time of its launch.
On the profile of Digicut’s new shareholders, Mr Afreh of Gold Coast Securities said the successful applicants were varied and included corporate and individual investors in and outside the country.
The company was established in 2004 to cater for the media production and advertising needs of GN, a business conglomerate founded Dr Paa Kwesi Nduom and his wife, Mrs Nduom.
It however, converted into a public limited liability company in 2017 to enable it undertake the IPO for fresh capital injection.
It is the first company in the group to be listed on the stock market.