Market analyst predicts successful Tullow share offer but…

The Head of Databank Research Nii Ampa-Sowah is predicting a very successful outcome of the share offer by Jubilee operator, Tullow Oil.  He said it may turn out to be one of the most successful in recent times.

The offer for the four million shares at 31 Ghana cedis each to raise 124 million Ghana cedis will be available for the next three weeks.

The listing will significantly boost the fortunes of the exchange.  Nii Ampah Sowah however told Joy Business one of the challenges the firm would face is how to bring some excitement in terms of trading in its shares after listing.

He said given that the company is offering only four million out of its total issued shares of 890 million, “issues concerning its liquidity will come into play and by liquidity we mean how often it will trade on the Ghana Stock Exchange.”

Nii Ampah Sowah also foresees a situation where some major institutions will take up some of the Tullow shares and when that happens trading will be very limited because institutions do not often trade their share, they rather hold them for a considerably long time.

But Chief Operating Officer for Tullow Oil Plc., Paul Mcdade told Joy Business it has an antidote to the issues raised by the Databank researcher.

He assured that “if there is a problem with liquidity on the Ghanaian market, we will definitely address it.” Tullow’s listing on July 27 will also make some history as the biggest company on the Ghana Stock Exchange. Tullow is currently worth 12 billion pounds. It will also be the first oil exploration and production firm to list on the local market.

Source: Joy Business/Ghana

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