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16.12.2004 Business & Finance

Starwin to be listed on Dec. 23

By JOY ONLINE

Starwin Products Limited is expected to begin trading on the Ghana Stock Exchange on Wednesday 23rd December.

This follows the approval of the company's listing on the Accra Bourse by the Listing Committee of the Exchange.

When listed Starwin would become the first pharmaceutical firm to be admitted onto the first list of the Ghana Stock Exchange.

Starwin had turned to the Accra Bourse to raise capital for the expansion and modernization of its machinery as well as diversification of its product line.

As part of the process it launched an Initial Public Offer IPO in October for 30 million shares, representing 20 per cent of the company at 500 cedis per share.

Starwin was thus expecting to raise 15 billion cedis. According to Worldwide Securities, sponsors of the IPO, the offer was oversubscribed by about 50 percent.

This is inspite of the fact that the offer was made at a difficult period coming in the wake of investor disenchantment over CAL Bank's refund of about 220 billion cedis in over subscriptions to investors and a general lull in trading activities as a result of the holding of general elections.

Chief Executive Officer of Worldwide Securities, Rexford Adomako Bonsu says the 50 percent over subscription has been well dealt with.

Having dispatched all share certificates to their holders in accordance with the rules of the market, the company is now set to begin secondary trading on the Ghana Stock Exchange next week.

Brokers say with the current trend of demand of stocks outstripping supply on the Accra Bourse, Starwin's listing is timely and a boost for the exchange.

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