Accra, Ghana//-The Ghana Stock Exchange (GSE), CalBank PLC, Amber Securities Limited, and InvestCorp are celebrating the successful raising of GHS1.16 billion on the local bourse.
This is the second issue rights by the indigenous Ghanaian bank, following its initial public offering (IPO) in 2004.
The right issue and private placement, targeted to raise around GHS900 million, ended up raising GHS1.164 billion. That was from the right issue side alone, representing an oversubscription 29%.
Huge Participation
Speaking at an event to celebrate rights issues and the private placement in Accra, the Board Chairman of CalBank PLC, Daniel Nii Kwei-Kumah Sackey, noted: “What is important is that it saw the participation of around one thousand eight hundred investors across both institutional and retail segments.
The retail segment, he insisted, is key. “It often ignored when it comes to looking at capital raised, but the tremendous support from this segment of our market for us underline the fact that even though they are not institutional investors who can’t do the hard numbers on their own, they can see quality offerings when they see one, and they can also see quality offerings via the performance track record of the institution, and I believe that CalBank represents one such of the institution”.
In addition to the rights issue. Mr Sackey said they also had a private placement window, and our initial target was exceeded because this brought in more than GHS500 million on top of the GHS1.16 billion they raised by the right issue.
“Unfortunately, we have to decline because it exceeded what we were looking for, the Board Chairman said.
This GHS500 million, according to Mr Sackey, was in clear, firm and executable commitment, so it was not just a promise.
“Once again, if you add both the right issue and the private placement, our total oversubscription presents around 85%, and that is very significant.
It is a resounding show of support and speaks volumes about the trust that our shareholders and the market place in CalBank’s governance, its leadership and its long-term value creation potential.
How the Capital Raised Will be Used
“With this huge capital raised, we are better position to scale innovation, pursue our digital transformation agenda. We will also sharpen our core SME and retail strategy, and we will expand access to credit.
Furthermore, Mr Sackey said the bank would strengthen customer engagement and would deliver solutions that support sectors that are at the heart of the growth of Ghana’s economy.
“We will have greater capacity through our improved balance sheet to support large businesses. More importantly, we will be disciplined and strategically deploy capital. We will reinforce our readiness for a financial landscape that is changing, and we will deepen our commitments to delivering sustainable and long-term value for our shareholders.
In her welcome address, the Managing Director of GSE, Madam Abena Amoah, said: “We rang the bell very loudly for CalBank in 2004 when it listed on the Ghana Stock Exchange at their IPO.
Today’s significant right issue is significant, and in discussing with our team, we thought that it was important to elevate it and to demonstrate why this transaction is so beautiful in all our sight, she added.
“This is because our country is at a new crossroad. A crossroad where if we take the right path, the economic transformation and wealth creation that we are looking that will make the private can lead will happen.
That is why CalBank being able to raise GHS1.16 billion from investors in Ghana, we thought it was an important milestone to celebrate, ring the bell, and make this a conversation topic in our media and show other companies how to do the same, Madam Amoah explained.
So that we can create the jobs, opportunities and create the wealth that our country and our nationals so well deserve. So, that is why we are so excited.
Madam Amoah indicated that the GSE was so excited to invite CalBank for the second time in 21 years to join us to ring the bell very loudly and signal that the market is indeed open.
She used the occasion to extend her congratulations and heartfelt appreciation to CalBank, its leadership, all the directors and shareholders for your vision and commitment to strengthening the bank’s capital base through using the public capital market.
According to the MD, this demonstrates the bank’s vision and belief in strong corporate governance and confidence in the bank’s growth strategy.
“The investors, our fund managers, our trustees, our pensions, our high-network investors, and the small investor on the road, you have shown tremendous confidence in CalBank PLC by participating in this rights issue.
Your support is fundamental to the growth and survival of Ghana’s capital market, and if we grow our capital, we will become a major driver of economic transformation.
To the advisors and licensees, Madam Amoah thanked them for their professionalism and dedication in executing this historic transaction. “And your expertise is what makes us mark today as a successful milestone, she stated.
The significance of this success again is that CalBank has raised GHS1.16 billion in an oversubscribed offer that shows that Ghana’s capital market is attractive for quality and trusted issuers and investors alike.
This is why the GSE is calling on other issuers to emulate the shining example of CalBank PLC.
If your company is contemplating your next growth strategy, if your company is contemplating how to survive your founder, if your company is contemplating becoming a 200-year-old business serving Africa and the world, this market is ready for you.
There is appetite and capacity for well-structured transactions from quality issuers. With proper planning, transparent communications, and great advisors, your capital raising can be executed successfully.
They at the Exchange are committed and are here to help companies to go through this process, working with the issuer, providing guidance, and working with their media partners to ensure that your objectives are achieved.
That is why the GSE is calling on more companies to come and use their public capital market.
