23 July 2018

Ghana: Energy Commercial Bank to Float Shares On Gse Next Month

Energy Commercial Bank is on course to receive a final approval from the Securities and Exchange Commission (SEC) to float shares to the Ghanaian investing public by August 2018.

Presently, the listing prospectus is with the SEC for final scrutiny and 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 Ghana Stock Exchange (GSE) right after the initial public offer.

The Bank of Ghana and the GSE had earlier expressed satisfaction with the bank's intention to list and given it the go ahead.

Energy Commercial Bank is hoping to float over 50 percent shares to Ghanaian institutional and retail investors. This is expected to bring in over ¢340 million during the floatation period to enable the bank to recapitalise to more than ¢400 million.

The bank is confident it will raise enough capital on the Ghana Stock Exchange because of its stability and performance over the years. It has been recording consistent profit since beginning the banking business in February 2011.

Even before the public offering begins, it is believed that several investors have expressed interest to buy stakes in the bank.

Managing Director and Chief Executive Officer, Christiana Olaoye in a statement said she was 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 said.

She assured customers and the Ghanaian banking public that her outfit would recapitalize ahead of the December 31, 2018 minimum capital requirement deadline.

She added that business had been good so far with the bank boasting of a strong liquid balance sheet.

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 the country -- five in Accra, three in Kumasi and the rest in Tema, Takoradi and Tamale.

It is expected to expand vigorously once it completes its recapitalisation

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