By Elikem MENSAH
UT Financial Service Limited’s (UTFSL) Initial Public Offer (IPO) has been marginally oversubscribed by 1.7% by local investors.
To this end, the company plans to list and begin trading on the Ghana Stock Exchange (GSE) from November 21, 2008. Share certificates to shareholders will be dispatched by November 14, 2008, a week prior to official listing.
The success of the IPO was made possible by the over 10,000 local investors who participated in the IPO. The Social Security and National Insurance Trust (SSNIT), the largest institutional investor in the country, did not participate in the IPO. This depicts how viable and attractive local investors find the UTFSL’s shares.
The amount raised was GH¢27,550,680 representing almost two times the total capital raised by all indigenous Ghanaian companies in the history of the GSE, excluding privatizations and secondary offers.
According to Prince Kofi Amoabeng, CEO of UTFSL, there will be no block trading by institutional investors after listing, since the company wants a true open market condition.
Amoabeng indicated the share offer was more for retail Ghanaians than foreign investors.
UT currently makes an interest margin of several banks. UT is looking into the future with lots of optimism on its financial expectations.
The company expects that its gross loan and advances will grow by 25% a year, between 2008 and 2012, thus increasing gross lending grew from GH¢78.94 million to GH¢192.72 million by 2012. In line with this, UT expects to increase its borrowing from investors in its liability side products, from GH¢71.045 in 2008 to GH¢173.45 million in 2010 and 42.5% by 2012.
Interest payable to investors is expected to remain constant on average at 16%up to 2012. Operating expenses as a proportion of interest income is expected to fall marginally from 29.4 this year to 28.98% by 2012. Fee and commission income is expected to rise by 13% a year from GH¢679.00 this year to GH¢1.1 million by 2012. Loan loss provisions are projected to remain constant at 9% every year.
UT Financial Service Limited’s (UTFSL) Initial Public Offer (IPO) has been marginally oversubscribed by 1.7% by local investors.
To this end, the company plans to list and begin trading on the Ghana Stock Exchange (GSE) from November 21, 2008. Share certificates to shareholders will be dispatched by November 14, 2008, a week prior to official listing.
The success of the IPO was made possible by the over 10,000 local investors who participated in the IPO. The Social Security and National Insurance Trust (SSNIT), the largest institutional investor in the country, did not participate in the IPO. This depicts how viable and attractive local investors find the UTFSL’s shares.
The amount raised was GH¢27,550,680 representing almost two times the total capital raised by all indigenous Ghanaian companies in the history of the GSE, excluding privatizations and secondary offers.
According to Prince Kofi Amoabeng, CEO of UTFSL, there will be no block trading by institutional investors after listing, since the company wants a true open market condition.
Amoabeng indicated the share offer was more for retail Ghanaians than foreign investors.
UT currently makes an interest margin of several banks. UT is looking into the future with lots of optimism on its financial expectations.
The company expects that its gross loan and advances will grow by 25% a year, between 2008 and 2012, thus increasing gross lending grew from GH¢78.94 million to GH¢192.72 million by 2012. In line with this, UT expects to increase its borrowing from investors in its liability side products, from GH¢71.045 in 2008 to GH¢173.45 million in 2010 and 42.5% by 2012.
Interest payable to investors is expected to remain constant on average at 16%up to 2012. Operating expenses as a proportion of interest income is expected to fall marginally from 29.4 this year to 28.98% by 2012. Fee and commission income is expected to rise by 13% a year from GH¢679.00 this year to GH¢1.1 million by 2012. Loan loss provisions are projected to remain constant at 9% every year.
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