Energy Commercial Bank Limited (ECBL) has launched its Initial Public Offer (IPO) to raise GHS340 million in shares from the Ghanaian investing public.
The launch on Tuesday, 2 October 2018 is part of the bank’s plans to meet Bank of Ghana’s new minimum capital requirement of GHS400 million by the end of 31 December 2018.
Addressing the launch, MD/CEO of Energy Commercial Bank Limited, Christiana Ekaete Olaoye, said: “From inception to date, since we began business in the sub-Saharan region, the bank exhibited prudent operational audit and risk management practices in line with Bank of Ghana’s policies and we will continue on this path of compliance.
“We have remained disciplined and focused, conforming to all operational processes, procedures, committing to entrench the best practices in all facets of our operations”, she added.
According to her, the launch of Energy Commercial Bank’s IPO today is a “confirmation of our dedication to the people of Ghana and the Ghanaian economy as we look forward to a future with hope, prudence and optimism”.
She said: “The Ghanaian economy is one of the fastest-growing economies in the world”, adding that it “provides many opportunities” for “business expansion” and also provides banks, including Energy Commercial Bank, the chance to grow and make profit.
In a speech read on his behalf at the launch of the IPO, central bank Governor Dr Ernest Addison, explained that under the new capital requirement directive, banks will be required to hold adequate capital to cushion the various capital charges that will emanate from their own Internal Capital Adequacy Assessment Process (ICAP).
He expressed the firm belief that the IPO will offer an opportunity to Energy Commercial Bank to raise the needed economic capital on which it can buffer capital charges as well as provide the needed capital cushion to absorb unexpected losses that may arise from its operations.
“In spite of these benefits, we should also be mindful of the reality inherent of the decision to go public. The capital market has a way of disciplining its participants, not forgetting the fact that there are also corporate traders on the market waiting to take advantage of underperforming companies.
“Let me also remind the Board and management that prospective shareholders will be looking forward to receiving dividend from their investment. To enhance dividend capacity, there is the need to take steps to improve on your risk management systems to ensure that shareholders’ worth is maximised”, Dr Addison stated.
The offer period is expected to last for 30 days from Tuesday, 2 October to 2 November 2018. The price per share is GH1.30 pesewas.
Energy Commercial Bank is floating millions of shares and the shares will subsequently be listed on the Ghana Stock Exchange where they will trade on the secondary market.
IC Securities is the Transaction Advisor 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.
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