Intravenous Infusions Limited, an indigenous pharmaceutical company, has intensified its search for a new underwriter to help expedite processes to list on the Ghana Alternative Exchange (GAX) by the end of the second quarter, so as to raise additional capital for expansion.

The Security and Exchange Commission (SEC) says the only thing holding back the Initial Public Offer (IPO) is the fact that Intravenous Infusions is not happy with the underwriter working on the listing.

“They are now looking for a new underwriter, and when that is done they will launch the offer,” the Director-General of the SEC, Dr. Adu Anane Antwi, told the B&FT.

The listing of Intravenous Infusions, a leader in the manufacture of intravenous infusions nationwide, will bring to three the number of companies listed on the GAX.

The Ghana Stock Exchange (GSE) created the alternative market to address complaints by SMEs about the stringent criteria which make it impossible for them to raise equity through the main bourse.

The GSE is targetting SMEs with a minimum stated capital of GH¢250,000 and that have been in operation for at least a year. It will also consider start-ups that have the potential to be profitable.

Samba Foods Limited, an indigenous food processing and preservation business, became the first local company to list on the GAX and raised GH¢2.5million.

The Meridian Marshall Holding Company last week launched its Initial Public Offer (IPO) on the GAX, becoming the first educational institution to list on the alternative market.

Meridian Marshall is the holding company of Meridian Pre University and Marshal University College. It is seeking to raise an amount of GH¢2.5million through the issuance of 25 million new ordinary shares at GH¢0.10 per share.

Izwe Loans Limited listed a GH¢80million medium-term note programme on the Ghana Alternative Market (GAX) this year.

A total of four notes totalling GH¢38.6million have been listed on the GAX. The notes are all senior secured and offer an alternative premium over Government of Ghana Treasury bill rates.

The tenor of the notes range from 1 to 3 years, and all proceeds will be used by Izwe Ghana to fund the growth of its loan book while managing the liquidity of its balance sheet.

Ordinarily, a company should have been in operation for at least three years with a minimum stated capital of GH¢1million to qualify for listing on the main exchange. And once listed, the entity is required to publish its financial statements quarterly.

For the new SME market, listed entities will be mandated to publish their statements half-yearly, and there is a GH¢1million revolving fund to support the listing expenses of SMEs on the GAX.