Ecobank IPO receives major patronage

The US$2.5 billion issuing of Rights and Initial Profit Offer launched by Ecobank Transnational Incorporated, an investment arm of the Ecobank Group, is closing up on its target with major patronage from the business world and individuals across Ghana and 24 other countries.

Just seven days after the launch, which was done simultaneously in 25 countries in Africa, hundreds of people in Ghana had already secured their prospectuses, with many others waiting to make offers, when reporters of The Statesman visited some offices of the bank in Accra last week.

When contacted for updates on the offer and the rights issue, the Manager Director of ETI, Mike Ashong, confirmed that he was even surprised about how massive the offers were being subscribed to and said the other 24 countries where the shares were being offered were also experiencing similar patronage.

Over-subscription of the offer will prevent ETI from listing on the London Stock Exchange where it had planned to generate funds, should the offer receive low patronage.

Speaking in an interview with The Statesman last week, Mr Ashong said the offer took off very well and had been successful since it was launched. He stressed that necessary steps had been taken to distribute adequate prospectuses at transaction centers in the 25 countries to avoid shortages.

Mr Ashong explained that the reason for the offer was to embark on an accelerated plan to expand the Ecobank Group network branches, recapitalise its banking subsidiaries to meet increased capital requirements, and to upgrade and modernize its technology platform.