Chai Energy plans US$300m IPO to acquire stakes in power producers

Chai Energy, a Ghanaian energy investment firm, is preparing a US$300 million initial public offering (IPO) on the Ghana Stock Exchange, tentatively scheduled for November 2026. The firm intends to raise approximately GH₵3.5 billion to acquire significant stakes in established independent power producers (IPPs) across the country. The primary targets for these acquisitions include the Bridge Power facility in Tema and Twin City Energy in Aboadze, marking a major strategic move to consolidate domestic ownership in the energy sector.

This proposed listing is expected to be one of the largest in the history of the Ghana Stock Exchange. Unlike typical energy sector offerings that seek funding for the construction of new plants, Chai Energy is focusing its capital on existing facilities. By targeting operational assets, the firm aims to provide investors with a more immediate entry point into the electricity-generation market, bypassing the risks and delays often associated with greenfield infrastructure projects.

To enhance the appeal of the offering, Chai Energy is considering the issuance of preference shares, which may feature returns linked to the US dollar. Such a structure is designed to attract both domestic and international institutional investors by providing a hedge against local currency volatility. The offering is currently undergoing the necessary regulatory reviews and is awaiting formal approval from the Securities and Exchange Commission (SEC).

The success of the IPO will likely hinge on the perceived stability of the power sector and the operational performance of the targeted plants. While the sector has faced historical financial challenges, ongoing government efforts to improve liquidity and financial discipline among utility providers could bolster investor confidence. If successful, the move could signal a new phase of private sector participation in Ghana’s energy landscape through the domestic capital market.