Total Petroleum Ghana Ltd., the operator of gas stations in the West African nation that boosted profit fivefold since 2008, rose to a record after saying it may issue bonus shares.
The stock rose 6.3 percent to 33 cedis by 12:10 p.m. in the capital, Accra, the highest level since April 1995, when Bloomberg began compiling the data. There were 313 shares traded, equivalent to 37 percent of the three-month daily average.
The company plans to issue 97.9 million shares to existing holders in the ratio of 7 new shares for every 1 held, Total Petroleum said in a statement published in the Ghanaian Times newspaper yesterday. Shareholders of the company, which has a market value of 490 million cedis ($245 million), will vote on the proposal at an annual general meeting on June 26, it said.
“Investors want to qualify for the bonus and get more shares,” Randy Mensah, a trader at Ecobank Development Corp. in Accra, said by phone today. “Total is fundamentally a sound company. After the bonus shares, the price will be re-adjusted and with that we expect interest from new entrants and more liquidity for the shares.”
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