Salt Miner Plans First $40 Million Public Stock Offering in Ghana Since 2018
Electrochem Ghana Ltd. is preparing an initial public offering to raise $40 million by March.
The company plans to increase its annual salt production to 1 million tons in two years and explore new markets.
Electrochem also plans to list on the Johannesburg Stock Exchange by the end of 2026 to diversify its investor base.
Electrochem Ghana Ltd., a closely held company that’s targeting to become one of Africa’s biggest salt producers, is preparing an initial public offering that will be the first listing on the main board of the Ghana Stock Exchange since 2018.
The company plans to raise the cedi equivalent of $40 million by March, Kwaku Ampromfi, chief executive officer of Electrochem parent McDan Group, said in an interview in the capital, Accra. The previous IPO in Ghana was a share sale by MTN Ghana Ltd. that raised 1.1 billion cedis ($69 million) six years ago.
The new capital will enable the company, which currently vies with Accra-based Panbros Salt Industries Ltd. to be West Africa’s biggest producer of the mineral, to lift annual output to 1 million tons in two years from 350,000 tons, Ampromfi said.
“We want to invest in new technology and equipment so we can explore new markets both domestically and internationally,” he said.
Demand for salt in Europe and Asia for food processing, chemical manufacturing and de-icing is expanding, which bodes well for output in Africa, the Nairobi-based SME Support Centre said in a June report.
Egypt is currently the biggest salt producer with annual production of 2 million tons, followed by Tunisia at 1.5 million tons, it said.
Electrochem also plans to raise $30 million through a private placement by the end of this month, Ampromfi said. The company intends to list on the Johannesburg Stock Exchange by the end of 2026 to diversify its investor base, he said.
Owned by Ghanaian business tycoon Daniel McKorley, McDan Group is a conglomerate with interests in shipping, freight forwarding, cargo and port handling, transportation and haulage.
