Energy Commercial Bank to float shares on Ghana Stock Exchange
One of Ghana's most liquid banks, Energy Commercial Bank is on course to receive a final approval from the Securities and Exchange Commission to float shares to the Ghanaian investing public by next month.
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 GSE right after the initial public offer.
The Bank of Ghana and the Ghana Stock Exchange 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 per cent 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 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 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 is optimistic many Ghanaian investors will 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 will recapitalize ahead of the December 31, 2018 minimum capital requirement deadline. She added that business has been good so far with the bank boasting of a strong liquid balance sheet.
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. It is expected to expand vigorously once it completes its recapitalization.