Cal bank, a reputable banking institution in Ghana, has unveiled an ambitious plan to bolster its financial standing and further enhance its growth trajectory through a GHS 600 million Renounceable Rights Issue.
This significant move, approved by both the Board of Directors and shareholders of Cal Bank Plc at the Annual General Meeting held in Accra marks a pivotal moment in the bank’s strategic development.
The Renounceable Rights Issue encompasses 1,872,461,736 ordinary shares of no par value at GHS 0.29 per share and 196,503,781 preference shares of no par value at GHS 0.29 per share.
This offering, referred to as the “Offer” or the “Rights Issue,” is structured in a ratio of 1 new ordinary share for every 0.3351 existing ordinary shares and 2 new preference shares for every 3.1935 existing ordinary shares held by qualifying shareholders.
In accordance with section 37 of the Companies Act, 2019 (Act 992) and Rule 40(b) of the Ghana Stock Exchange Listing Rules, 2006, CalBank’s register of members will be closed to the general public on 4th April 2024.
The ex-rights and qualifying dates for the Offer have been set for 28th March 2024 and 3rd April 2024 respectively, with only shareholders on the register of members as of 4th April 2024 being entitled to exercise their rights under the Offer.
Qualified shareholders and investors who have had rights renounced in their favor may submit applications, adhering to the Ghana Stock Exchange Listing Rules, the terms of the Offer, and other relevant laws.
Enhancing the Bank’s Regulatory Capital Position
The capital raised from the Rights Issue will be allocated towards enhancing the Bank’s regulatory capital position, facilitating the effective execution of its growth strategy, and ensuring the continuous delivery of long-term value to its shareholders.
Meanwhile, the Securities and Exchange Commission approved Cal Bank’s Rights Issue Circular, providing further details of the Offer.
Additionally, the Ghana Stock Exchange has granted approval for Cal Bank to list the additional shares following a successful Offer. The Offer is scheduled to commence on 5th April, 2024 and conclude on 26th April 2024.
IC Securities (Ghana) Ltd (“IC”) is playing a crucial role as the Lead Manager and Sole Sponsoring Broker to Cal Bank in the execution of the Offer. Furthermore, IC and Cal Bank are acting as the Receiving Agent and Receiving Bank respectively for this Rights Issue.
In the intervening time, Cal Bank’s Renounceable Rights Issue signifies a proactive step towards fortifying its financial position, driving sustainable growth, and cementing its commitment to delivering value to its esteemed shareholders.
This strategic initiative not only underscores Cal Bank’s confidence in its growth prospects but also reaffirms its dedication to transparency and compliance with regulatory requirements, thereby fostering trust and confidence among investors and stakeholders alike.
As the bank progresses with its Rights Issue, it remains steadfast in its mission to remain a leading force in Ghana’s banking sector, while continuously striving to meet the evolving needs of its customers and deliver superior returns to its shareholders.
By bolstering its financial foundation, the bank is well-positioned to capitalize on emerging prospects, expand its market presence, and drive sustainable value creation for all stakeholders.
This strategic move not only augments Cal Bank’s competitiveness but also highlights its commitment to fostering long-term financial stability and prosperity in the communities it serves.
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