Access Bank Ghana is set to open an Initial Public Offering hoping to raise about 104 million cedis ($26 million) from investors in the West African Country. Access bank Ghana is a subsidiary of Access Bank of Nigeria. The IPO represents about 19% of the company’s value according to Bloomberg.
Access Bank Ghana CEO, Dolapo Ogundimu explained why they were embarking on the offer.
“There is the need to grow capacity to take advantage of the opportunities that have emerged from running successful operations in Ghana so far……We are seeking to expand our operations by making new investments in branch expansion, robust technology and other infrastructure,”
According to the offer prospectus, the bank will be selling at 4 cedis per share which is about N317 per share using official exchange rates. Prospective investors are required to purchase a minimum of one hundred shares at GHC4.00 per share.
Nigeria’s Access Bank owns about 92% of its Ghana subsidiary with a book value investment sum of about N13.7 billion. It is the bank’s second largest subsidiary by investment, with Access Bank UK costing it about N18.5 billion. The exchange rate is currently, GHC1/N79.5.
At a trailing earnings per share of GCH0.73 the share price of GCH4 is coming at a price earnings ratio of about 5.4x.
Access Bank Nigeria share price is currently N5.69 and trading at a price earnings ratio of 1.9x.
Access Bank Ghana at a share price of GCH 4 has a market capitalization of GCH 442.7 million (N34.9 billion) compared to its Nigerian Parent with a market cap of about N162.8 billion.