By Kofi Ahovi
The Initial Public Offer (IPO) of Ecobank Transnational Incorporation (ETI), which started on August 25 and was supposed to have ended last Friday, has been extended to October 31st 2008. The extension affects all the other countries where the share is on offer.
Speaking to Business week the Corporate Affairs Manager of Ecobank, Rammy Baite, explained that the offer was extended because of certain delays in other African countries where the sale is currently ongoing.
According to him, Liberia only received its approval barely a week ago from its capital market regulators, adding that holidays in some of the offer countries may have hampering the sale of shares of the transnational bank as initially scheduled.
Usually these extensions are due to low patronage and under-subscription of share offers, but Baite have denounced this assertion.
ETI, a pan African bank aims at raising US$2.5 billion combined Rights Issue and Public Offer after the Board of Directors of the bank and the three regulatory authorities approved the registration and listing of new shares on three particular stock markets.
The regulatory authorities are Nigeria Stock Exchange (NSE), Ghana Stock Exchange (GSE) and the Bourse Regionale des Valeurs Mobilieres (BRVM), a regional stock exchange in Abidjan.
In addition to the US$2.5 billion, the bank will again raise US$500 million through various debt instruments. This will bring the offer’s total value to US$3 billion.
According to ETI, the amount raised will be used to support the bank’s affiliates in order to increase their minimum capital requirements as most of the central banks have clearly started increasing their banks stated capital requirements.
A total of 3,763,759,981 shares will be offered to ETI shareholders across the continent at a price of US$0.27 per share in the ratio of five new shares for every nine existing shares. Also, a total of 5,116,499,328 shares are being offered to the public at US$0.29 per share.
The Rights Issue and the Public Offer are being undertaken at discounts of 20.0% and 12.5% respectively to the 30-day volume weighted average price of ETI shares on all the three stock markets.
Ecobank Nigeria PLC, Stanbic IBTC Bank PLC and ICMG Securities Limited are joint Issuing Houses to the offer in Nigeria, while Ecobank Development Corporation (EDC) and First Africa SA Limited are the financial advisers to the offer in all the three markets.
ETI is the holding company of the Ecobank Group, the leading independent regional banking group in sub-Saharan Africa with a presence in more Africa countries than any other bank, currently operating in 25 countries.
The Initial Public Offer (IPO) of Ecobank Transnational Incorporation (ETI), which started on August 25 and was supposed to have ended last Friday, has been extended to October 31st 2008. The extension affects all the other countries where the share is on offer.
Speaking to Business week the Corporate Affairs Manager of Ecobank, Rammy Baite, explained that the offer was extended because of certain delays in other African countries where the sale is currently ongoing.
According to him, Liberia only received its approval barely a week ago from its capital market regulators, adding that holidays in some of the offer countries may have hampering the sale of shares of the transnational bank as initially scheduled.
Usually these extensions are due to low patronage and under-subscription of share offers, but Baite have denounced this assertion.
ETI, a pan African bank aims at raising US$2.5 billion combined Rights Issue and Public Offer after the Board of Directors of the bank and the three regulatory authorities approved the registration and listing of new shares on three particular stock markets.
The regulatory authorities are Nigeria Stock Exchange (NSE), Ghana Stock Exchange (GSE) and the Bourse Regionale des Valeurs Mobilieres (BRVM), a regional stock exchange in Abidjan.
In addition to the US$2.5 billion, the bank will again raise US$500 million through various debt instruments. This will bring the offer’s total value to US$3 billion.
According to ETI, the amount raised will be used to support the bank’s affiliates in order to increase their minimum capital requirements as most of the central banks have clearly started increasing their banks stated capital requirements.
A total of 3,763,759,981 shares will be offered to ETI shareholders across the continent at a price of US$0.27 per share in the ratio of five new shares for every nine existing shares. Also, a total of 5,116,499,328 shares are being offered to the public at US$0.29 per share.
The Rights Issue and the Public Offer are being undertaken at discounts of 20.0% and 12.5% respectively to the 30-day volume weighted average price of ETI shares on all the three stock markets.
Ecobank Nigeria PLC, Stanbic IBTC Bank PLC and ICMG Securities Limited are joint Issuing Houses to the offer in Nigeria, while Ecobank Development Corporation (EDC) and First Africa SA Limited are the financial advisers to the offer in all the three markets.
ETI is the holding company of the Ecobank Group, the leading independent regional banking group in sub-Saharan Africa with a presence in more Africa countries than any other bank, currently operating in 25 countries.
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