HFC Bank to raise GH¢50million on GSE

HFC Bank has begun processes aimed at raising some Gh¢50 million through the Ghana Stock Exchange (GSE).

It follows approval from the Board of Directors of the Bank at its Extra Ordinary General Meeting.

The funds raised from the offer are expected to help the bank meet the new Gh¢400 million minimum capital requirement set by the Central Bank.

Starr Business gathers the prospectus for the transaction has been forwarded to the Securities and Exchange Commission (Ghana) for approval to issue 90,909,094 ordinary shares in a ratio of 1 new share for every 3.2716 existing shares held.

An approval to list the additional shares on the Ghana Stock Exchange is also being sought.

The offer will seek to raise GHS50 million through the renounceable rights issue.

The right price per share may be issued at a discount of up to 60 percent to the market price.

The offer is expected to commence on November 22, 2017.