Access Bank says its Initial Public Offer of its shares to raise additional capital for its operations has been successful.
A total of 1,820 applications were received from qualifying applicants subscribing for a total of 7,404,575 shares to raise GHȼ29.62 million compared with the minimum subscription of GHȼ 21 million to declare the offer successful.
The bank sought to raise the additional capital to support its growth and expansion strategies.
Mr. Calleb Osei, Head of Financial Control and Strategy who disclosed in an interview with Times Business in Accra on Friday said the IPO, sought to issue 26,000,000 shares at GHȼS4 per share to raise GHȼ104 million.
He said the bank had received firm commitments from investors to cover the shares unissued under the terms of the offer, which would be issued in due course after all required approvals pertaining to their issue have been duly obtained.
“We have received adequate confirmation from an institutional and individual investor to enable us to achieve our overall objective,” he said.
Mr.Osei said an amount of GHȼ54 million and GHȼ 10 million was being expected from the institutional and individual investor respectively.
“The institutional investor could have taken advantage to during the IPO period but needed approval from its board in order to invest in the shares,” he said.
He said the Securities and Exchange Commission had been informed about the commitments from the investors adding that the shares will be listed on the Ghana Stock Exchange when received.
Mr. Osei said both deals were expected to be finalised by the first quarter of next year.
The capital raised places investors firmly at the centre of Access Bank’s strategy, ensuring sustainable growth and returns through one of the strongest capital base in the market.
As per the terms of the offer, all successful applicants with the Central Securities Depository accounts will have their shares credited to their respective accounts by December 16, 2016 and the shares will be available for trading from December 22, 2016.
African Alliance Securities Ghana Limited acted as the Financial Advisor and Sponsoring Broker to Access Bank in respect of the offer.
By David Adadevoh