Energy Commercial Bank has received approval from the Securities and Exchange Commission (SEC) to raise GH¢340 million in shares from the Ghanaian investing public.
Prior to that, the Bank had gotten “No Objection” from the Bank of Ghana as well as the Ghana Stock Exchange to raise capital on the GSE by offloading over 50percent of shares.
The bank is floating millions of shares to investors through an Initial Public Offer (IPO). The shares will subsequently be listed on the Ghana Stock Exchange where they will trade on the secondary market.
Expressing delight about the approval of the IPO which will enable the bank to recapitalize ahead of time to the tune of GH¢400 million, Board Chairman, Dr. Jimoh Ibrahim, said Energy Commercial Bank is moving to another level by listing on the GSE, offering opportunities to many Ghanaians and investors to become part owners of the noble but vibrant institution.
“We have been operating for almost seven years and it is now time for many Ghanaians to become part of the success story of the Bank. We have year-on-year exhibited solid banking practices (risk, operational and audit) – elements described as very crucial in the sustenance of banking business,” he emphasized.
Managing Director and Chief Executive Officer, Christiana Olaoye for her part said the Bank has performed well over the years, maintaining healthy capital adequacy and liquidity ratios, thereby ensuring safety of depositors’ funds and maximizing returns to shareholders.”
IC Securities is the Transaction Adviser and is expected to market the shares to many investors within the country. Energy Commercial Bank presently operates 12 branches in Ghana- five in Accra, three in Kumasi, and the rest in Tema, Takoradi and Tamale.