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16.11.2007 Business & Finance

GOIL Lists Today

By Daily Guide

Ghana Oil Company Limited (GOIL) would finally be listed on the Ghana Stock Exchange (GSE) today.

GOIL recently held a successful initial public offer and its shares were oversubscribed. The company is believed to have roped in ¢359 billion from the initial public offer (IPO).

The guests at the listing ceremony would include high ranking government officials such as the Minister of Energy, and Finance, members of the Securities and Exchange Commission, and major stockbrokers among others. In total, about 200 guests are expected to grace the occasion.

Investor confidence is expected to soar as GOIL will thus become the 32nd company as well as the second oil marketing company after Total Petroleum Ghana Limited to be listed on the Accra Bourse.

The SEC, regulator of the capital market has already approved the IPO results paving way for the listing of GOIL.

Several institutional investors such as SSNIT and ECOBANK have bought a chunk of the company's shares with ECOBANK subscribing ¢100 billion.

Many financial and security analysts considered GOIL's listing as a potential stock coming on the back of the nation's discovery of huge oil reserves at the Cape Three Point in the Western Region.

Significantly, GOIL's balance sheet for the last financial year also makes it an attractive commodity.

Its financial result for 2006 showed that the company registered an impressive net turnover growth of 39.2 per cent, making ¢1.92 trillion as against ¢1.38trillion recorded for 2005.

The company is expected to use the flotation to recapitalize its operations as well as modernize its stations.

GOIL enjoys an average market share of 18.1 per cent and is considered as market leader in the retail business.

By Felix Dela Klutse