Daniel Nonor
11 November 2009
The Standard Chartered Bank yesterday officially announced a GH¢48 million renounceable Rights Issue of 1,655,172 ordinary shares valued at GH¢29 per share. Apart from meeting the Bank of Ghana capital requirement, the bank is also seeking to expand its corporate loan portfolio and support its working capital.
The offer is in a ratio of 1 new share for every 10.6309 existing shares held. Only qualifying shareholders or investors who have had rights renounced in their favour are eligible to take part in the offer. The bank stated.
The ex-rights and qualifying dates for the offer was set for 30th October and 4th November 2009 respectively, meaning only share holders on the register of members of the bank, as at close of business on 4th November 2009, will be entitled to exercise their rights under the offer.
Although the price value of GH¢29 per share raises eye brows as being slightly on the high side, compared to others, management of the bank say they are looking at lowering the share price and broaden its shareholder base next year. "It doesn't mean we would necessarily do it," says Hemen Shah, MD of Standard Chartered Bank Ghana.
Hemen explains that the banks strategy is to focus on things they know to do best. "We are not a mass market bank" This he said explains why Standard Chartered Bank is not on an aggressive branch expansion but rather aggressively partnering local banks to get their services to the majority.
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