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CalBank Plc (CalBank), a leading commercial bank in Ghana partly owned by Daniel Ofori, a Ghanaian businessman who ranks as the richest investor on the Ghana Stock Exchange, has secured approval to raise money through a rights issue.
The Accra-based lender, founded in 1990, is offering existing shareholders the right to purchase additional ordinary and preference shares at a fixed price of GHS0.29 per share, for a total offering size of GHS600 million ($45.28 million).
The rights issue will entail the issuance of 1,872,461,736 ordinary shares and 196,503,781 preference shares. The bank announced that existing shareholders on the record date will have preferential rights to buy new shares in proportion to their current holdings, allowing them to maintain their ownership stake after the capital raise.
CalBank’s strategic move: Strengthening capital base through rights offering
The rights offering, approved by CalBank’s board and shareholders at the June 8, 2023, Annual General Meeting, aims to bolster the bank’s regulatory capital position and fuel its growth strategy. The offer period commences on April 5 and closes on April 26, 2024.
Existing shareholders on the record date (April 3, 2024) will be entitled to purchase new shares in proportion to their current holdings, allowing them to maintain their ownership stake after the dilution.
The proceeds from the rights issue will be used to improve CalBank’s capital adequacy ratio, a key metric reflecting a bank’s financial health. A stronger capital base allows CalBank to absorb potential losses and support future lending, ultimately positioning the bank for long-term success in the Ghanaian market.
CalBank’s rights issue: Fueling growth and fortifying its position in Ghana’s banking industry
Founded in 1990, CalBank is a leading financial services provider catering to a diverse clientele, including corporations, high-net-worth individuals, NGOs, SMEs, and retail customers. Prominent Ghanaian businessman Daniel Ofori holds a 3.9 percent stake in CalBank.
Ofori, renowned for establishing Ghana’s leading apparel retailer White Chapel Ltd., serves as chairman and CEO of White Chapel Holdings. He also holds board positions in various companies. White Chapel Holdings is the parent company of White Chapel Ltd.
Successful completion of the rights issue will provide CalBank with the financial flexibility to pursue its growth strategy and solidify its position as a leading player in Ghana’s banking sector.
