Republic Bank Ghana Limited on Friday announced a renounceable rights offer of 463,636,366 ordinary shares of no par value at GH¢0.55 per share to qualifying shareholders.
The offer, which would be made in a ratio of one new share for every 0.8376 existing shares held by a qualifying shareholder, is geared towards mobilising some GH¢225 million to meet the GH¢400 million minimum capital requirement announced by the Central Bank.
The offer, it would be recalled, was approved by the shareholders of Republic Bank Ghana Limited at its Annual General Meeting on 26th April, 2018 and the Securities and Exchange Commission (SEC) on Friday, 22nd June, 2018.
A statement issued by the company said the register of members of Republic Bank Ghana Limited “will hence be closed to the General Public on Monday, 16th July, 2018.”
“The ex-rights date has been set for Wednesday, 11th July, 2018 while the qualifying date for the offer is set for Friday, 13th July, 2018.”
It said only shareholders on the Register of Members of Republic Bank Ghana Limited at the close of business on Friday, 13th July, 2018 will therefore be entitled to exercise their rights under the offer.
Serengeti Capital Markets & Republic Investments are the managers for the offer, and the Sponsoring Brokers are Serengeti Capital Markets & Republic Securities Ghana Limited.
The bank’s board of directors recommended no dividend payment to shareholders to be able to realise the amount.
In 2017, the bank increased its stated capital from GH¢96.19 million to GH¢146.19 million last year after its board of directors passed a resolution for a GH¢50 million renounceable rights issue.
He said the bank ended the year with a capital adequacy ratio of 23.14 percent compared to 11.50 percent in the previous year.
The bank and its subsidiaries recorded 10.7 percent rise in assets from GH¢1.89 billion to GH¢2.10 billion.
Deposits also increased by 10 percent in line with the industry average of 10.6 percent.
On the back of strong recoveries in loans and advances, accounts management and prudent investments, the bank recorded profit-after-tax of GH¢45.43 million after two successive years.
By Samuel Boadi