Access bank will officially list on the Ghana Stock Exchange (GSE) after successfully raising the minimum subscription needed to declare its Initial Public Offer (IPO) successful in order to list.
The listing which will take place on Wednesday, 21st December, 2016 will see Access bank becoming the first Nigerian bank to list on the GSE.
The bank on October 19th,2016 launched its IPO to raise 104 million cedis and extended the issue from November 11 to November 25, 2016.
Stock market analysts at the time cited inappropriate timing and pricing as some reasons leading to the extension of the offer period for Access bank’s Initial Public Offer.
“The extension was given to investors who were not able to purchase within the stipulated period. As expected for some us we were not considering the deal to be flying; also, we think the timing was not enough and the pricing too some of us think was on the high side,” Stock market analyst, Kofi Kyei stated.
The bank whose parent company is headquartered in Nigeria, was seeking to raise 104 million cedis, but succeeded in raising only 29.62 million cedis, which is slightly higher than the minimum 21 million cedis required by regulators to enable it get the green light to list on the GSE.
26 million shares were issued at 4 cedis per share, with a total of 1,820 applications subscribing to about 7.4 million shares.
Citi Business News has gathered the bank has received firm commitments from other investors to cover shares that were not issued under the terms of offer.
Over 96 million cedis is expected from those investors which will lead to total figure of over 125 million cedis.
Ninety percent of the subscribers are believed to be individuals with one of the subscribers a local pension fund manager.
The ownership pie of the company following the IPO will now be about 75 percent share of the bank belonging to the parent company of Access Bank Ghana that is Access bank PLC, 10 percent now owned by a Ghanaian pension fund while the remaining 15 percent belongs to a number of institutions and individuals.
Access bank Ghana whose current capital base is around 430 million cedis, is seeking to use proceeds from the IPO to increase this figure while the remaining cash will be used to expand the bank’s presence and visibility in Ghana by building additional 76 branches with 2-3 years.
The bank’s IT infrastructure as well as customer base are also expected to be expanded with the proceeds.