CalBank Ghana PLC to raise GH¢600 million in renounceable rights issue

Indigenous financial institution, CalBank Ghana PLC, is set to raise GH¢600 million in a renounceable rights issue which is to be sourced through private placement of ordinary and preference shares to new investors.

The rights issue announced by the bank’s Board comprises of 1,872,461,736 ordinary shares of no-par value, priced at GH¢0.29 pesewas per share, and 196,503,781 preference shares of no-par value, also priced at GH¢0.29 per share.

Board Chair of CalBank Ghana PLC, Joe Mensah, addressing the media at an event, explained that the offer will be in a ratio of one new ordinary share for 0.3351 existing ordinary shares, and one new preference share for every 3.1935 existing ordinary shares held by a qualifying shareholder.

He added that the new capital injection is expected to boost the Bank’s position, support its growth plans, give long-term value to shareholders, and restore capital buffers to pre-DDEP levels.

“Our major shareholders have been fully supportive of the capital raise exercise and the Board is poised to restore the Bank’s capital following due regulatory process. Today, we invite every shareholder of CalBank to take advantage of the opportunity and exercise their rights. With your continued support and partnership, we are confident in our ability to realize our vision of becoming a superior banking institution,” Board Chair of CalBank PLC, Joe Mensah, is quoted to have said.

Mensah said the renounceable rights issue will further support funding of targeted pipeline transactions in some priority areas of the economy, enhance expansion of the bank’s operational activities at key locations, and boost its technology platforms.

Carl Selasi Asem, the Acting Managing Director of CalBank PLC, on his part, said the bank seeks to tap into various opportunities in the financial sector to improve its operations.

"We strongly believe it is high time banks do financial intermediation with its customers. Our five-year strategy is to look beyond just government securities and explore other avenues.

"We are doing a business that is relevant to our customers at the retail end, as well as SMEs and corporate level. So, we are not too keen on developing into a government security type of banking,” Carl Asem added.

Meanwhile, the ex-rights and qualifying dates for the offer have been set for March 28, 2024, and April 3, respectively.

It is entitled to only shareholders named on the members register of CalBank who can exercise their rights under the offer at the close of business on April 3, 2024.