Intravenous Infusions Limited (IIL), an indigenous manufacturer of pharmaceutical products, has floated shares on the Ghana Alternative Market (GAX) of the Ghana Stock Exchange (GSE) to raise GH¢ 12.3 million fresh capital to expand operations.
When successful, the company will also shore up its capital base and use part to retire debts which have for some time squeezed the company’s financial flexibility.
Between October 14 and November 25 this year, the company will seek to issue 153 million ordinary shares valued at GH¢ 0.08 per share in an initial public offer (IPO), which will represent 45 per cent ownership of the entity.
This means the 132 million shares, representing 100 per cent ownership by existing shareholders will be diluted to 55 per cent.
According to the Managing Director of Intravenous Infusions, Mr Richard Okrah, the listing had become necessary in order to achieve the future plans the company had outlined for expansion to meet growing demand in the West Africa sub-region.
He was optimistic the company would be able to raise the intended capital, which he said, would partly be used to increase the working capital, reduce outstanding debt and to complete the construction of a new production line.
“Investing in Intravenous will help the company not only to save lives but to better meet the high demand for intravenous fluids in Ghana and surrounding countries and also drive export income to help improve our national economy as a whole,” he said.
The floatation and successful listing will make IIL the fourth equity to be listed on the GAX since it opened in November 2014.
Mr Okrah encouraged investors to invest in the Intravenous Infusions shares and be part of the company’s profitability so as to help ensure that IV fluids were always available for use.
Embrace the capital market
The Managing Director of the GSE, Mr Kofi Yamoah, in an address, underscored the need for small and medium enterprises (SMEs) to learn from the steps of IIL and resort to the capital market to raise capital, saying enterprises in the country could not continue to finance their long-term projects with short-term financing.
According to him, his outfit was very satisfied with the positive response the GAX had received from the general public since it was opened in November last year.
“Owning property together has never been our way of life as a people. Everyone wants to own property that belongs to them, but that mentality must be worked on to ensure we don’t behave in the same way with our businesses,” he said.
Credit: Graphic
