Accra, Sept. 4, GNA - The Ghana Oil Company Limited (GOIL), an oil marketing company, on Tuesday launched an initial public offer of its shares in a bid to raise 17.96 million Ghana Cedis (179.63 billion cedis) to enable it expand and modernize its operations.

The company is putting on sale 89.8 million shares made up of 64.8 million shares, representing about 35 per cent of government holdings, and 25 million shares to be issued by the company.

Out of the 64.8 million cedis government shares on offer, about 9.3 million shares would go to employees of GOIL under an Employee Share Ownership Plan. The remaining 80.5 million shares would be offered to the public at a price of 20Gp (2,000 cedis).

Government will put on sale additional 12.9 million shares in the event of over subscription, to reduce its holdings to 51 per cent to wholly or partially satisfy the excess subscription.

The company will get 50 billion cedis (five million Ghana Cedis) out of the envisaged amount to be realized from the sale to undertake modernization and revamping of selected stations, to rehabilitate and expand identified storage depots and to diversify into other related businesses while the remainder goes to government.

The offer will run from September 4 to October 5 this year with trading in the company commencing on October 31.

Launching the offer, Mr. Kwadwo Baah-Wiredu, Minister of Finance and Economic Planning, said the wholly owned state company was going public as part of government's strategy to reduce its involvement in the running of commercial entities.

The move is in line with government policy to divest its holdings in state enterprises through the Ghana Stock Exchange.

Besides, the floatation will also allow government to raise funds to meet budgetary programmes.

Mr. Baah-Wiredu said government would continue to adopt proactive policies to enhance the growth of the Ghana Stock Exchange. He asked the board and management to instil financial discipline and good corporate governance practices in their operations to meet the stringent reporting conditions on the Stock Exchange. Mr. Kwame Ampofo Twumasi, Deputy Minister of Energy, urged the public to invest in GOIL, citing growing global demand of oil and the oil discovery in the country as good prospects that put the company in good stead.

Mr. Yaw Agyeman-Duah, Managing Director of GOIL, said management would adopt an aggressive marketing strategy of development to tap unexplored markets.

The company will also build new storage tanks at Takoradi to receive new products, gas oil, gasoline and kerosene.

There are also plans to enter the aviation oil market.

GOIL was incorporated as a private limited liability company in 1960 as AGIP Ghana Company Limited. Government, however, bought back the company in 1974.