CAL Bank launches rights issue

CAL Bank has launched its rights issue to raise an amount of GH¢30 million through the issue of 150 million new ordinary share to investors.
The offer that opened last Monday will run till Friday, October 23, 2009.
In an address at the launch, the Managing Director of New World Renaissance and lead managers of the offer, Ms Abena Amoah, said the 150 million shares were being offered at GH¢ 0.20 per share.
Ms Amoah said though there was no minimum shares to be bought by investors, each investor was expected to purchase at least 200 shares.
She explained that the offer was an affirmation of the bank's resilience to overcome the challenges in the industry and chart a new future full of opportunities for the bank.
She was confidence that the offer would again enhance the bank’s profitability, boost its lending capacity and strengthen existing processes at the bank, geared at serving their customers better in the years ahead.
A Director of the bank, Mr Paarock Vanpercy, who launched the offer, said it would enable the bank to expand the number of branches which currently stood at 13 and also expand the number of ATMs from 40 to 50 by the close of the year.
He commended investors who invested in the bank in 2004 and had stayed with the bank throughout the period of growth and encouraged them to buy more shares.
The Managing Director of the bank, Mr Frank Adu Jr, said the bank's re-capitalisation process had coincided with the government's desire to reposition itself to gain local and international recognition.
Mr Adu said shareholders in March this year approved an increased in equity capital of up to GH¢ 100 million to enable the bank embark on a new strategic growth.
In 2004, CAL Bank came onto the financial market with an Initial Public Offer (IPO) of GH¢ 5.4 million. Since then the bank has consistently and steadily grown its market share and assets base.