Energy Commercial Bank says it has failed to raise the minimum amount required for its Initial Public Offer (IPO).
“The minimum amount to make the Offer successful was not raised and therefore refunds will be made to all applicants. Applicants are advised to contact receiving agents or receiving banks where they applied for shares in the Offer to receive their refund,” the Bank said in a statement.
Refunds
The Bank said, “Applicants should ensure that they have proof of their application (e.g. receipt) and proof of identification when they contact the respective receiving agents or receiving banks.”
Refunds will be available at the registered offices or branches of the respective receiving agents and receiving banks from 14 December 2018.
Minimum capital requirement
According to Bank, it “is raising the required capital to meet Bank of Ghana’s minimum capital requirement from potential investors through a private placement.”
Requirements for a successful IPO
The IPO consisted of an offer for subscription of 261,538,462 new ordinary shares of Energy Commercial Bank Limited to raise GHS 340,000,000 on the main board of the Ghana Stock Exchange (“the Offer”).
In the event that this amount was not obtained, then all monies paid for ECBL shares under the Offer are to be returned to the receiving banks and receiving agents for onward distribution to applicants after the Offer period has ended.
Background
Energy Commercial Bank last October launched its Initial Public Offer to raise GH₵340 million in shares from the Ghanaian investing public.
SEC’s approval
Earlier, Energy Commercial Bank received approval from the Securities and Exchange Commission (SEC) to raise GH¢340 million in shares from the Ghanaian investing public.
Prior to that, the Bank had gotten “No Objection” from the Bank of Ghana as well as the Ghana Stock Exchange to raise capital on the GSE by offloading over 50 percent of shares.
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