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12.05.2007 Business & Finance

GCB shareholders will be richer - Databank


Databank, one of Ghana's major financial resource houses has said shareholders of Ghana Commercial Bank would be far richer following the implementation of the rights issue which kicks off with a major launch on Monday May 14, 2007.

This follows GCB's final approval received from both the Securities and Exchange Commission and the Ghana Stock Exchange.

Briefing the GNA on the benefits that the process would accrue, Ms Ntiwa Kwakye, a Data Analyst of the Databank Research Department said GCB is doing well looking at the figures and its performance on the Ghana Stock Exchange. She said with the huge asset base they have the potential to perform. It was also to give the public an insight into what they could be buying into and why.

She noted that the total number of shares will increase, but will remain as a percentage of the total shares to be listed.

Ms Kwakye said the Bank is taking on the competition, "and if management is able to handle things well, which they seem to be doing, we expect to see something good coming out."

GCB currently has 165 million issued shares and is expecting to raise this to 240 million issued shares while raking in some ¢450 billion in the process.

The Rights Issue is open to the entire investing public. Furthermore, the GSE will provide a platform for qualifying shareholders who do not wish to sell their entire Rights or part of their Rights to the offer to other interested investors.

She explained that with the large number of ATM rollout by the Bank and technological changes expected, GCB will soon have more customers trooping to their ATMs rather than the banking halls.

"Since government pays out salaries to its employees, the halls are usually choked on many days, but with the ATMs, this is subject to change if IT is held in high esteem," she said.

Ms Kwakye called for the sustained staff training and changes in attitude, good customer care as major steps that would gain the bank yields.

Source: GNA