Republic Bank, a member of Republic Financial Holdings Limited (RFHL) of Trinidad and Tobago, has begun its renounceable rights issue through the Ghana Stock Exhange.
The purpose of the Rights Issue is to enable the Bank meet the regulatory minimum capital requirement, develop and grow its business and undertake larger volume transactions in line with the growth and competitive strategy of the Bank.
According to the Managing Director of the Bank, Mr. Anthony Jordan the Offer which is expected to begin from 23 July to 10th August, 2018 will also further improve the Bank’s single obligor limits and enable Republic Bank to better serve the needs of its clients in a competitive environment. An improved single obligor limit will enable the Bank to implement and achieve its growth and competitive strategy and therefore improve its market share.
The decision was arrived at the 27th Annual General Meeting of the Bank held in Accra when shareholders of the bank approved, amongst others, a resolution to issue additional shares through a renounceable rights issue to raise up GHC255,000,000.
This, according to Mr. Jordan, is in accordance with the regulations of the Bank, the Companies Act, and other relevant laws and regulations and subject to prior approval by the GSE and SEC.
He said: “The offer comprises a renounceable Rights Issue of 463,636,366 new ordinary shares at GHC 0.55 per share to Qualifying Shareholders in a ratio of one new share for every 0.8376 existing ordinary share held. The Offer is priced at GHC 0.55 per share, representing a 63% discount to the current market price of GHC 1.50, July 20, 2018 or a 57.5% discount to the three-month average share price of GHC 1.29 pesewas.”
In October 2017, the bank had a successful rights issue by raising additional GHC50 million to bring its capital to GHC146 million.
In April 2018, HFC rebranded to Republic Bank Ghana in line with its parent company’s brand name. Republic financial Holdings Limited is rated BBB+ by Standards and Poor’s and has over $10 billion worth of assets.