Two companies on the Ghana Stock Exchange (GSE); Aluworks and the Cocoa Processing Company (CPC) could be delisted by December 2018 over lack of compliance.
The Cocoa Processing Company which was suspended from trading in August 2017 has for the past three years failed to submit audited financial and operational results.
It was put on a watch list in December 2017 after it promised to comply with the GSE directive to submit the results which have been outstanding for 2015, 2016 and 2017.
As of May 2017, CPC owed some syndicated banks US$20m. CPC has told the Stock Exchange, it does not have a full board of directors to sign the accounts.
The company which listed on the GSE in February 2003 could have its 15 years stay on the Exchange come to an end by December 2018 with its current financial difficulties.
The unionised staff would, however, be pleased with the delisting because it could pave way for the government to bail out the company which is already 90 percent government owned. It is illegal for the government to come to the aid of a publicly traded company
Another company, Aluworks which has been on the GSE since November 1996 and started with a share price of GHS0.135 is also yet to “resolve working capital difficulties”.
In 2013, Aluworks tried to raise GHS30m after floating shares but could only get GHS7.23 million. The company in May 2016 was reportedly closing in on a US$25million strategic investment deal with a big player, Vendata Resources.
Despite the financial struggles, the company has promised to resolve the challenge by September in default of which the GSE will delist it, a statement from the GSE said.
Managing Director of Aluworks, Kwasi Okoh, has blamed the company’s struggles on unfair trade practices. He said Ghana has become a dumping ground for cheaper aluminum products, particularly from China and Nigeria.
Aluworks trades in aluminum sheets, coils, corrugated roofing sheets, louvre blades, etc.
But the Managing Director has promised to bounce back and improve its standing on the Ghana Stock Exchange.
“We use to be the darling boy of the stock exchange, we will be back to our formal status”, Kwasi Okoh said in May after GSE repeated delisting threats.
A third Clidestone Ghana Limited, is still on the GSE’s watchlist.
The criteria for listing include capital adequacy, profitability, spread of shares, years of existence and management efficiency.