Bank linked to Ghanaian serial investor Daniel Ofori completes $39.2-million rights issue

Feyisayo Ajayi -

Key Points:

  • CalBank completes a renounceable rights issue, aimed at raising GH₵600 million ($39.2 million).
  • The rights issue offered 2.07 billion shares at GH₵0.29 per share, maintaining shareholder ownership stakes.
  • Strong investor confidence in CalBank’s strategic vision reflected by 502,915,885 subscribed shares worth GH₵145.85 million ($9.51 million).

CalBank, a commercial bank partly owned by Ghanaian businessman Daniel Ofori, has completed a renounceable rights issue aimed at raising GH₵600 million ($39.2 million). The bank plans to use the proceeds, which exceeded the minimum target of GH₵120 million ($7.83 million), to bolster its capital adequacy ratio and support future growth plans.

In accordance with the terms of the rights issue, CalBank offered 2.07 billion shares at GH₵0.29 ($0.019) per share, comprising 1.87 billion ordinary shares and 196.5 million preference shares. Shareholders could purchase one new share for every 0.3033 existing shares held, maintaining their ownership stake. The issue successfully infused GH₵145.85 million ($39.2 million) into the bank, bolstering its capital base.

CalBank rights issue exceeds goal

Despite facing mid-May hurdles, including an injunction filed by a minority shareholder, CalBank’s rights issue prevailed. The offer received a robust response, with 502,915,885 shares worth GH₵145.85 million ($9.51 million) subscribed, exceeding the minimum target of GH₵120 million ($7.8 million). This underscored investor confidence in CalBank’s strategic direction.

CalBank’s management expressed satisfaction with the outcome of the rights issue. “We are pleased with the strong support from our shareholders, which reflects their confidence in our strategic vision and growth prospects. This capital raise will enable us to pursue new opportunities and enhance our service offerings to our valued customers,” the bank stated.

CalBank’s broad reach

Founded in 1990, CalBank serves a diverse clientele, including corporations, high-net-worth individuals, NGOs, SMEs, and retail customers. Ghanaian businessman Daniel Ofori holds a 3.9-percent stake in the bank. Ofori is renowned for establishing Ghana’s leading apparel retailer, White Chapel Ltd., and serves as chairman and CEO of its parent company, White Chapel Holdings. His backing of CalBank is expected to attract further interest from both local and international investors.

CalBank’s successful rights issue marks a pivotal milestone in the bank’s growth trajectory. Bolstered by a strengthened capital base, the bank is strategically positioned to seize emerging opportunities within Ghana’s dynamic financial landscape. As CalBank continues to innovate and expand, stakeholders can anticipate robust performance and significant value creation, underpinned by unwavering investor confidence and a clear strategic vision.