Investor appetite is strong, but Ghana needs more IPO-ready companies – PwC

Ghanaian businesses may be overlooking one of the most significant growth opportunities available to them, as a growing pool of long-term investment capital continues to seek quality businesses capable of accessing the capital market, speakers noted at a webinar hosted by PwC Ghana.

The webinar, The Path to Public: Preparing Ghanaian Businesses for Growth Through the Capital Market, brought together regulators, institutional investors, market operators and corporate finance professionals to discuss how Ghanaian businesses can better position themselves for sustainable growth through public markets. The webinar forms part of PwC Ghana’s broader thought leadership initiative, “Unlocking Patient Capital: Preparing Ghanaian Businesses for Growth through the Capital Market,” a campaign designed to deepen awareness of the role capital markets can play in supporting business transformation, long-term value creation and economic growth.

A key theme emerging from the discussion was that Ghana’s challenge is increasingly not a shortage of capital, but a shortage of businesses prepared to access it.

Recent market developments suggest growing investor appetite for credible investment opportunities.

The Ghana Stock Exchange delivered one of Africa’s strongest performances in 2025, recording a 137.4% return in US Dollar terms. Market capitalisation rose to approximately GHS172 billion, while recent listings attracted significant investor interest. Zen Petroleum raised GHS640 million through a fully subscribed offer, while Kasapreko’s IPO attracted GHS1.73 billion in subscriptions against a target of GHS700 million, representing an oversubscription of 146%.

At the same time, Ghana’s pension industry has continued to expand, with total pension assets reaching GHS111.1 billion in 2025, creating a substantial pool of long-term capital increasingly seeking investment opportunities outside traditional government securities.

Kingsford Arthur, Financial Services Leader at PwC Ghana, said the discussion highlighted an important shift in the country’s financial landscape.

“The conversation in Ghana has traditionally been framed around businesses searching for capital. Increasingly, however, we should also be asking whether enough IPO-ready businesses exist to absorb the growing pool of patient capital available in the market. The evidence suggests that investor appetite is strong, but the pipeline of market-ready businesses remains relatively thin.”

He noted that a stronger pipeline of listed companies could have benefits extending far beyond individual businesses.

“When more companies access public markets, the impact extends beyond capital raising. We see stronger corporate governance, greater transparency, enhanced competitiveness, improved investor confidence and ultimately stronger economic growth. Public markets help transform founder-led businesses into enduring institutions capable of competing regionally and attracting long-term investment.”

The webinar also challenged several long-standing misconceptions that continue to discourage businesses from considering public listings.

Participants noted that many business owners still believe listing inevitably results in loss of ownership or control, despite evidence that most IPOs involve the sale of minority stakes. Recent listings demonstrated that founders and existing shareholders can continue to retain significant ownership while accessing growth capital and institutionalising their businesses.

According to Daniel Desmond Koomson, Senior Manager in Deals at PwC Ghana, one of the biggest barriers preventing businesses from considering IPOs is perception rather than reality.

“Many founders view an IPO primarily as a capital-raising event. What emerged from our discussion is that the more important benefit is often the transformation that takes place before the listing. The readiness journey compels businesses to strengthen governance, improve reporting, build management depth, formalise succession plans and establish the structures required to create value over generations.”

He added: “The question is not whether a business needs capital today. The question is whether it is doing the work today to ensure it can access capital tomorrow. The companies that successfully access public markets are typically those that begin preparing years before they need funding.”

The discussion further highlighted the broader economic role of capital markets in supporting innovation, job creation and private sector development.

Speakers noted that patient capital is particularly suited to financing long-term investments, including technology adoption, regional expansion, research and development, large-scale production facilities and other initiatives that may not align neatly with traditional bank lending models. A deeper capital market also positions Ghanaian businesses to take advantage of opportunities arising from the African Continental Free Trade Area (AfCFTA) by supporting the scale and governance standards required to compete across borders.

The webinar featured contributions from representatives Joyce Esi Boakye of the Ghana Stock Exchange, Dr Jacob Aidoo of the Securities and Exchange Commission, Ken Alorzuke of SSNIT and Daniel Desmond Koomson of PwC Ghana, who shared perspectives on listing requirements, investor expectations, market opportunities and the IPO readiness journey. The session attracted business leaders, investors and advisers from across Ghana’s corporate sector.