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13.04.2005 Business & Finance

GWEB Prospectus Under Scrutiny - SEC

By Ghanaian Chronicle

The Securities and Exchange Commission (SEC) has confirmed that Golden Web Limited's prospectus, to raise ¢9.5 billion from the Ghana stock Exchange (GSE) was still under consideration.

Golden Web has been listed on the GSE for over six months under the provisional list.

The National Trust Holdings Company (NTHC), golden Web's leading broker presented the company's prospectus to the SEC to float 17 million shares at ¢550 per share.

The Head of Research and Marketing Manager, Mr. Ashong-Katai, confirmed this to the Business Chronicle in Accra last Wednesday.

Golden Web intended to raise ¢4.5Billion through the "fast track approach" of listing on the GSE as working capital, to expand the Company's operations.

Golden Web was established in 1982 to undertake export of wildlife, farming and processing of vegetable oils. Currently, the company focuses on palm kernel, Soya bean oils, and cakes. About 80% of the palm-kernel cakes produced are exported leaving 20% for the local market. The company has currently acquired a 45,000-litre capacity oil tank, additional oil filter, conveyors and elevators among others. Sunflower, cottonseeds, peanuts and other oil-bearing seeds would be added to the variety of vegetable oil products they produce.

The purpose of listing on the stock exchange was to substantially reduce the impact of debt level of the company to ensure improved earning and cash flows. It is also to raise additional working capital to expand the company's operations and to encourage the public to become part owners of the corporation with significant growth.

The Chief Executive Officer of the Company, Mr. Thomas Bello, disclosed that it has not been easy using short-term loans to expand the company. He said "listing on the exchange would give GWEB long leverage, latitude to operate and to expand to employ more people thereby creating more wealth for the people and more avenues to pay more taxes".

A new valuation of the company was done, when the company contracted a ¢5 billion loan from the government of Italy to purchase a palm oil refinery plant which was not stated in the first prospectus they submitted to the GSE.

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