Energy Commercial Bank (ECB) is on course to receiving final approval from the Securities and Exchange Commission (SEC) to float shares to the Ghanaian investing public by next month.
Presently, the listing prospectus is being scrutinized by the SEC for final approval.
The process to allow Ghanaians to become part owners of the lender began in March 2018, and the financial intermediary is expected to list on the GSE after the Initial Public Offer (IPO). The Bank of Ghana (BoG) and Ghana Stock Exchange (GSE) have expressed satisfaction with the bank’s intention to list.
Energy Commercial Bank is hoping to float over 50 percent shares to Ghanaian institutional and retail investors. This is expected to bring in over GH¢340 million during the floatation period to enable the bank recapitalize to more than GH¢400 million. The bank is confident it would raise enough capital on the Ghana Stock Exchange because of its stability and performance over the years.
It has been recording consistent profit since the beginning of banking business in February 2011. Even before the public offering begins, it’s believed that several investors have expressed interest in buying shares in the bank.
Managing Director and Chief Executive Officer, Christiana Olaoye is optimistic many Ghanaian investors would buy into the bank, since it has proven over the years to be one of the safe, secure and strong banks in the country.
“We have exhibited the right banking practices, the records are there for everyone to see…we are very liquid and our asset quality is good so I am very confident the share offer will be highly subscribed by Ghanaian investors, that is pension funds, equity funds, investment companies and the Ghanaian public.”
She assured customers and the Ghanaian banking public that her outfit would recapitalize ahead of the deadline for December 31, 2018 minimum capital requirement. She added that business has been good so far, with the bank boasting of a strong liquid balance sheet. IC Securities, the transaction adviser, is expected to market the shares to many investors in 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. It’s expected to expand vigorously once it completes the recapitalization.
Source: african markets