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Business & Finance | Oct 29, 2004

Starwin launches Initial Public Offer

GNA

Accra, Oct. 29, GNA - Starwin Products Limited, a pharmaceutical company, on Friday launched the prospectus for the sale of 30 million shares, representing 20 per cent of the company, to the public after it had met the stringent requirement of the regulators.

The Initial Public Offer (IPO) being done at a price of 500 cedis per share will enable the company to raise 15 billion cedis for expansion and modernisation of its machinery as well as diversification of its product line.

Starwin Products Limited is one of the Small and Medium Scale Enterprises put on the provisional list this June in fulfilment of the Exchange's drive to get individual businesses to float shares to get the necessary capital investment to meet their expansion goals.

Mr Rexford Adomako-Bonsu, Chairman, Worldwide Securities Limited, Lead Advisor and Sponsoring Broker of the listing, said the company had complied fully with the disclosure policy of the Ghana Stock Exchange and the Security and Exchange Commission.

He said the company had put in place good management practices and enforced rigid reporting requirement in line with good corporate governance.

Mr Adomako-Bonsu said the money, when raised would be used to extend the factory layout, acquire new equipment and machinery, expand the product range and enhance distribution efficiency as well as meet the growing export orders from the Economic Community of West African States (ECOWAS).

He asked investors to buy into the company because of its huge potential for growth as well as help them to diversify their investment portfolio.

Mr Edward Boohene, Executive Chairman Starwin Products Limited, said the Company was responding to market developments in the pharmaceutical industry to boost its capacity in the tablet sector and create additional capacity for its liquid line.

Mr. Kwasi Osei, Director General SSNIT, who launched the prospectus, was happy that the stock market was becoming an option for businessmen to seek capital for expansion.

Starwin Products Limited was incorporated in 1993 after the reorganisation of Sterling Products Ghana Limited. The Company currently produces 10 branded products made up of dry mixed tablet line, wet mixed tablet line, liquid mixing and filling line and dry powder line. The offer lasts until November 26

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