GSE hoping to enhance liquidity of 100 unlisted public companies with new OTC market
The Ghana Stock Exchange (GSE) is set to launch its Over-The-Counter (OTC) Market by the end of June 2024, targeting some 100 unlisted public companies to trade their securities.
This initiative, spearheaded by Abena Amoah, Managing Director of the GSE, aims to provide a trading platform for public companies that are not currently listed on the main exchange.
The OTC market, she notes, will have less stringent reporting requirements for public companies as compared to those listed on the primary market.
Speaking to norvanreports, Ms Amoah noted the new market will benefit over 100 public companies in Ghana whose shareholders often lack transparency regarding share prices and trading mechanisms, adding that the OTC market will also attract investors interested in these public companies, offering an additional investment avenue for investors.
“So, what we are creating is just giving their shareholders a platform to trade their securities by organizing an unorganized market for them, because not all public companies want to be listed, but all public companies need to create a facility for their shareholders to be able to trade their securities and that is what we have made possible with the OTC market, a very simple system to enable their shareholders have transparency and an avenue to buy more or sell more securities,” she quipped.
“We are hoping that even through that platform, the companies themselves can be able to raise capital and have a more organized and transparent way to do that,” she added.
The announcement of the launch of the OTC market was made during the GSE’s engagement with the Institute of Financial and Economic Journalists (IFEJ) on June 5, 2024.
The engagement aimed to garner support from business and financial journalists to enhance reporting on the activities of the Stock Exchange, particularly with happenings on the equities and fixed-income markets.
Accurate and relevant information is crucial for investors to make informed and important investment decisions.
The launch of the OTC market represents a significant step in the GSE’s efforts to broaden the scope of trading and investment opportunities in Ghana.
It underscores the GSE’s commitment to fostering a more inclusive and transparent trading environment, accommodating public companies that opt not to list on the main exchange yet still require a structured platform for their securities.
As the GSE prepares for the official launch, the market anticipates a boost in investor engagement and a more dynamic trading environment.
The introduction of the OTC market is expected to enhance the liquidity and visibility of public companies, contributing to the overall growth and stability of Ghana’s financial markets.
The GSE’s forthcoming OTC market launch is poised to offer significant benefits for public companies and investors alike, promoting a more transparent and accessible trading platform.
This initiative is a testament to the GSE’s proactive approach in adapting to the evolving needs of the market and its stakeholders.
