Accra Hearts of Oak Sporting Club popularly known as PHOBIA was one of the earliest clubs to be formed in Ghana in November, 1911. This sporting club has currently issued an initial public offer and this is the first of its kind in Africa. If this IPO is successful, shares would be listed on the Ghana Stock Exchange and would make a historic mark in the IPO records in Ghana and Africa as a whole.
There are so many things that make an IPO successful and some important factors to consider are the financial status and future prospects of the company. Accra Hearts of Oak although currently in debt has assured the public that its operations would change drastically in a positive way after the IPO. The Board Chairman, Mr. E. M. Commodore-Mensah says the capital from the IPO would be used to enhance activities in the club. Experts are predicting that, this IPO would be successful because of the support or fan base of the club and the sentiments attached to the club by the fans. Apart from Kumasi Ashanti Kotoko (a football club), Hearts of Oak has the largest fan base in Ghana. Nevertheless, people are with the view that the price per share (0.50p) is too expensive looking at the stature of the club.
Hearts of Oak has won twenty (20) titles in the Ghana Premier League and six of them were consecutive (1997 to 2002). The Sporting club has also won nine (9) championships in the FA cup and had one CAF championship league title in 2000. In addition, they are seven times winners of the Ghana Telecom Gala. One of the most prestigious cups in Ghana is the Top Four Cup and Accra Hearts of Oak has won it for three (3) times and was African Super Cup champion in 2001.
With all these wins, it is quite obvious that there is a lot more to do, now that the Ghana Premier league and other leagues are developing. Moreover, their closest rival, Ashanti Kotoko has remained a force to reckon with.
The financial statement of the club showed impressive results for last year despite the bad performance in the league. Would this affect the IPO subscription in anyway? The shares of the club are to be traded in the OTC market and this could also affect the subscription of the IPO, meanwhile, lead brokers SAS Brokerage Services denies that. The truth would be out after the offer ends on 29th August, 2011. They ‘never say die until the bones are rotten’