By: Fred Yaw Sarpong
Mr. Adu Anane Antwi, the former Director General of the Securities and Exchange Commission (SEC) has welcomed the government decision to list the Volta River Authority (VRA) and the Ghana Grid Company Limited (GRIDCo) on the Ghana Stock Exchange (GSE).
According to him, the decision is laudable and called on the government to expedite action to that effect. “This is what we have been talking about at SEC,” he the former SEC boss told the Daily Express.
Listing the VRA and the GRIDCo on the stock market is to allow the government raises a substantial amount to expand the businesses of these two companies or to settle all debts owed by the companies and at the same time allow Ghanaians and other investors owe part of the shares in the companies.
President Nana Akufo-Addo announced in his maiden State of the Nation Address (SONA) on Tuesday at Parliament that his government plans to list the VRA and the GRIDCo on the stock market.
He did not mentioned as to whether government will offload majority or minority shares of these companies on the stock market.
The President pointed out that “we have started to develop a national electricity master plan, which will also explore the benefits of listing VRA and GRIDCo on the Stock Exchange.”
Mr. Antwi said if the state institutions are been listed on the stock market, it will boost investor confidence and it will also give signal that Ghana’s stock market is a viable place to be.
“No one is sure of the percentage the government will decide to offload on the stock market. However, we wish more than 50% of the shares will be offload onto the market,” he mentioned.
Dr. Steve Manteaw, the Campaign Coordinator for Integrated Social Development Centre (ISODEC) was of the opinion that “the President decision is a brilliant idea to dilute the ownership of the state institutions.”
“We have been advocating for this to take place for a very long time. It’s good the government has found it necessary to list some of the state institutions on the stock market,” said Dr. Manteaw.
Mr. Prince Owusu, an Investment Analyst at Sirf Finance LDT Company has also applauded the government for it plans to list VRA and GRIDCo on the stock market. “We will be waiting for the detail of the plans from the government and after that we will decide on what to do as a company,” he added.