Home > Business News > Intercontinental Raises GH¢28.9m

Intercontinental Raises GH¢28.9m

 

Albert Mmegwa

Albert Mmegwa

Intercontinental Bank Ghana (IBG) Limited has joined the league of banks that are currently seeking share offers to raise additional capital to meet the Bank of Ghana’s minimum capital requirement of GH¢60 million by the end of December 2009.

To this end, the bank yesterday launched its Private Placement offer to raise GH¢28.9 million from individuals and institutions in Ghana.

This means that the bank is offloading 30 percent of its shares to Ghanaians as part of its vision of allowing them to become part owners of the bank.

The Private Placement is by Dutch Auction of 15,621,622 to 17,000,000 ordinary shares of no par value at a price, ranging between GH¢1.70 per share to GH¢1.85 per share; with the minimum subscription being 410,000 ordinary shares.

The bank says it has never change its plan of listing on the Ghana Stock Exchange (GSE), adding that it would float shares on the capital market.

Alex Segbefia, the Deputy Chief of Staff who represented government at the launching ceremony, said it was the objective of government to attain a middle-income status by 2020 with a true reflection of the people, noting that the government was working with the financial institutions to provide credits to people.

He reiterated government’ plan of making Ghana the financial hub in West Africa, stressing that it would monitor and supervise the mobilization of deposits and credits to the people.

Explaining further, Mr. Segbefia said the recapitalization of banks would enable the financial intermediaries to play a major role in the emerging oil production.  

Ken Ofori Atta, Executive Chairman of Databank Financial Services, lead Managers of the offer, revealed that IBG’s success story should motivate potential investors to acquire shares in the bank, indicating that IBG’s growth over the past three years had culminated in the bank becoming the 167th biggest bank in terms of assets and sixth in terms of deposits.

He emphasized that the board of the bank had decided to pay a dividend of between 35-50 percent, a policy that would make it one of the best corporate institutions in the country.

Albert Mmegwa, Chief Executive Officer and Managing Director of IBG Ghana, on his part, said his outfit was not only a Nigerian bank but “wants to make profits and create a platform for Ghanaians to become part owners.”

“The bank started with five branches in 1997 but within three years it has 20 branches. At the end of the year, we would add three more branches.

 “We are represented in every sector of the economy, providing credit to market women and started as a savings and loans company,” said Mr. Mmegwa.

With regard to its 2008 financial performance, the bank posted a remarkable performance with its profit before tax increasing from GH¢14.026 million to GH¢117,000 in 2007, while its shareholder’ fund also increased from GH¢7.137 million to GH¢23.202 million.

Total assets base of the bank at the end of 2008 was GH¢299.59 million, representing an increase of over 200 percent over the 2007 audited figure of GH¢99.87 million.

On human capital, the bank’s staff increased from 271 in 2007 to 457 in 2008, resulting in the recruitment of about 256 persons.

In the event of oversubscription, the bank would not issue additional shares to take up the excess subscription. 

Credit: dailyguideghana

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