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27.11.2008 Business & Finance

UT begins trading on the Bourse

By Daniel Nonor - Ghanaian Chronicle

UT Financial Services, a non-bank finance institution, has officially been listed on the Ghana Stock Exchange (GSE), with a pre-opening trading of 15,000 shares at 0.33p.

The company thus became the third to be listed this year, after State Insurance Company (SIC) and Golden Star Resources Limited, and is the 37th on the bourse.

UT Financial Services, which until recently was known as Unique Trust Financial Services, put on sale a couple of weeks ago, some 90.2 million shares at GH¢0.30 per share.

This represented 80.2 million shares being relinquished by two shareholders, and an additional 10 million shares, to increase the capital of the company.

The IPO, as predicted by market watchers, was over-subscribed by 1.71 per cent. The offer raised GH¢27,550,680, as against the initial targeted figure of GH¢27,087,000.

Mr. K. S. Yamoah, Managing Director of the Ghana Stock Exchange, lauded the achievement of UT Financial Services, for making remarkable imprints on the market even on the heals of turbulence in the global financial market.

He said UT's ingenuity in a highly competitive market, was an indication of the vibrant nature of our market.

He indicated that UT's listing would further boost liquidity on the exchange – a thing that had long been the bane of the Ghana Stock Exchange.

Mr. Ken Ofori Atta, Managing Director of Data Bank, indicated that UT was poised for greater outcomes, considering the hallmark it had, and continued to create in the Ghanaian financial market.

He emphasised that the oversubscription of UT's shares, without SSNIT's participation, was an indication of what measure of command UT brings to the market.

Captain Prince Kofi Amoabeng (Rtd), Chief Executive Officer of UT, on his part, stated the company's commitment to do all in their power, to serve the primary interest of their over 10,000 investors, and promised appreciable returns on their investments.

He said the share number of their shareholders placed a check on the company to perform. “We will ensure to be Ghana's best company by all means,” he assured investors.

The company comes to the market with a price earning ratio of 14.25, which is lower than all, but one, of the eight other financial stocks on the Ghana Stock Exchange.

The average P/E ratio for financial stocks on the Accra bourse is 20, with the highest of the financial stocks reaching 30.

In 2007, UTs return on average invested capital was 247 per cent, significantly higher than that achieved by the banking sector last year.

The company is however envisaging a growth of 25 per cent for the next five years.