CalBank bolsters capital with successful rights issue on Ghana Stock Exchange
CalBank PLC, one of Ghana’s leading financial institutions, has successfully concluded a rights issue, marking a significant milestone in its capital-raising efforts.
The bank announced yesterday, Monday, July 8, 2024, the listing and commencement of trading for 455,150,509 additional ordinary shares and 47,765,376 preference shares on the Ghana Stock Exchange.
This move comes as part of CalBank’s strategy to strengthen its capital base and support its growth initiatives in an increasingly competitive West African banking landscape.
The successful rights issue demonstrates investor confidence in the bank’s business model and future prospects.
“We are pleased with the strong response to our rights issue,” said a spokesperson for CalBank. “This additional capital will enable us to further our strategic objectives and continue delivering value to our shareholders.”
The rights issue was managed by IC Securities (Ghana) Ltd, a prominent investment bank in the region. Both CalBank and IC Securities expressed their gratitude to the public for ensuring the success of the offer.
This capital-raising exercise is seen as a positive signal for Ghana’s financial sector, which has been working to meet stricter capital requirements imposed by regulators in recent years.
It also reflects the growing sophistication of the Ghana Stock Exchange, which has been attracting increased attention from both local and international investors.
Analysts suggest that the inclusion of preference shares in the offering provides CalBank with a flexible financing instrument, potentially offering more attractive terms to certain classes of investors.
As CalBank integrates this fresh capital, market observers will be keenly watching how the bank deploys these funds to drive growth and maintain its competitive edge in Ghana’s dynamic banking sector.
The successful completion of this rights issue may encourage other Ghanaian companies to consider similar capital market activities, potentially leading to a more vibrant equities market in the country.
Trading of the new shares commenced Monday on the Ghana Stock Exchange, with market participants closely monitoring the price action in the coming days.
