Dalex Finance has launched, Vision fund, a long-term mutual fund aimed at raising a minimum of GH¢150,000 through the sale of shares during the Initial Public Offer (IPO).
During the IPO which runs from July 8 to July 28, the company will float 750,000 shares at an initial offer price of GH¢ 0.20 per share.
Interested investors will get the opportunity to buy a minimum of 100 shares and in multiples of 25 shares thereafter.
The Executive Chairman of Dalex Finance, Mr Alex Kwasi Bruks, said this at the official launch of the Fund in Accra last week.
The Dalex Vision Fund is an open-ended mutual fund, investing primarily in shares, medium to long-term treasuries and corporate bonds.
It is geared towards long-term capital appreciation and seeks to invest in stocks which are listed on recognised markets throughout Africa and the rest of the world.
The fund will reinvest all investment income earned or received, and investors in the fund will benefit from the capital appreciation of the share price.
It is targeted at institutional and retail clients who seek to realise significant capital appreciation over the long term.
Mr Kwasi Bruks said the rationale behind the introduction of the fund was to support businesses to acquire the needed finances to grow their operations.
“The reason why Ghanaian companies are unable to undertake big projects is because of the lack of capital, coupled with high interest rates from the banks,” he said.
He said the business environment was faced with challenges such as lack of equity and lack of capital to start firms.
He said the fund would therefore help companies and individuals to get capital to start new projects.
He also added that the fund would target pension funds, life insurance companies, educational institutions, churches, associations, co-operations, unions, and young individuals.
“Our products and services include mutual funds, pension funds, financial advisory, wealth management, endowment funds and managed accounts,” he added.
Delivering his keynote address, the Deputy Director-General of the Security and Exchange Commission (SEC), Mr Alexander Williams, commended the management of Dalex Africa Group for the introduction of the fund.
According to him, the fund would help facilitate the growth of the capital market in Ghana, adding that: “These schemes offer an opportunity to all investors, including those with limited funds to have access to a diversified portfolio of investments.”
Mr Williams said the fund had been thoroughly examined to ensure accuracy in compliance with SEC’s Unit Trust and Mutual Fund Regulations, 2001 (LI 1695).