Hearts of Oak IPO fails

Hearts of Oak have been shocked at a disastrous campaign to review the ownership structure of the club with the initial public offer which ended yesterday.

The club could only raise 700,000 cedis out of a targeted 10 million Ghana cedis despite a two week extension to the end of August date.

Hearts of Oak hoped to raise 10 million cedis from 20 million shares at a unit price of 50 pesewas but the club failed poorly.

At the start of the share flotation, managers, Strategic African Securities were approached by individual potential investors expressed the desire to buy big percentages but were turned down with the view of granting supporters the first opportunity to own shares in the club that turns 100 years in November 2011.

JOY Sports understands that potential investors who wanted to purchase shares are now unsure about the profitability of the club in future.