- 3 Marks
Question
A company is said to be listed when its securities are approved to be bought and sold on the Stock Exchange. Newly issued shares cannot trade in the Over-The-Counter (OTC) Market before getting listed on the Ghana Stock Exchange (GSE). You need to communicate this intention to the GSE and work with the Exchange’s listing requirements before the public floatation.
Required:
Identify and explain THREE requirements a company is expected to meet before it gets listed on the Ghana Stock Exchange.
Answer
- Minimum Stated Capital:
The company must have a stated capital of at least GH¢1 million after the public floatation to be eligible for listing on the First Official List. For the Ghana Alternative Market (GAX), the minimum stated capital is GH¢250,000. - Minimum Public Float:
At least 25% of the company’s issued shares must be made available to the public for subscription. This ensures that there is sufficient market liquidity and broad public ownership of the shares. - Spread of Shareholders:
The company must have at least 100 shareholders after the public offer for the First Official List, and at least 20 shareholders for the Ghana Alternative Market (GAX). This requirement ensures that the shares are widely held and not concentrated in the hands of a few individuals.
(3 marks)
- Tags: Capital Markets, Equity, Listing Requirements, Stock Exchange
- Level: Level 3
- Topic: Other information in the annual report
- Series: NOV 2017
- Uploader: Dotse