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26.11.2008 Business & Finance

UT Lists On GSE

By Daily Guide

UT Financial Services yesterday became the 35th listed company on the Ghana Stock Exchange (GSE), with a call by the Executive Chairman of Databank, Ken Ofori Attah, on all public companies to take corporate governance issues seriously.   

This, according to him, would boost investor participation on the Accra Bourse and therefore improve liquidity.

Looking at the market capitalization of about GH¢25 million of the indigenous firm, UT was poised to excel, the investment banker guru added.

He emphasized that UT's share offer which was oversubscribed marginally was done without the Social Security and National Insurance Trust, hence it was a landmark transaction.

UT thus joins the league of local-breed firms such as Clydestone, GOIL, Golden Web, Aryton Drugs, CAL Bank among others which are listed on the stock market.

About 210,252,000 shares of individual and institutional investors of UT were listed with an opening price of 30Gp and closing price of 33Gp.

Analysts predict that the share price of UT will soar since investors who could not buy into it during the initial public offer (IPO) would now apply through secondary purchase on the market despite the recent dull trade.

This optimism is informed by the fact that the company has been growing at a rapid pace, culminating in the rolling out of branches across the country and the recent establishment of a subsidiary in Germany. It subsequently plans to venture into the West African market, where it intends growing its business portfolios.

Launching the shares on GSE, Frank Adu Junior, Council Chairman, GSE, called for more governmental and institutional support to grow indigenous firms which have toiled to advance their business.

Citing Databank as an example, Mr. Adu Junior who is also the managing director of CAL Bank said the assistance local firms were getting was not enough to grow and transform their businesses.

On his part, Kofi Yamoah, Managing Director of the Ghana Stock Exchange, explained that the market would become more relevant when large companies such as UT come on board to deepen it.

He added that the GSE would next month launch the landmark automation and the central security depository system (CSD), a move that will help improve liquidity on the market.

Prince Kofi Amoabeng, Chief Executive Officer, UT Financial Services, assured investors that his outfit was going to live up to expectation and therefore accrue more returns for them.

He said though UT was doing well, he was of the conviction that the financial services provider was going to do better than what it had done already.

UT is the third company to be listed on the market this year after insurance and mining giants, SIC Insurance and Golden Star Resources.

The company expects its net revenue to grow by 32 percent in 2008, 22 percent in 2009 and 20 percent in 2010.

By Charles Nixon Yeboah

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