Ghana’s Energy Bank to Refund IPO Backers After Missing Target

Ghana’s Energy Commercial Bank Ltd. said it will refund all applications for its initial public offering of 340 million cedis ($70 million) after failing to receive the minimum amount that was set for the share sale.

Energy Bank, which is owned by Nigerian conglomerate Energy Group, planned the Ghana’s second-largest IPO as lenders in the country are seeking to raise their capital levels to meet a year-end deadline set by the industry regulator. The minimum subscriptions that it had to receive for the offer to be successful was 68 million cedis.

“The minimum amount to make the offer successful was not raised and therefore refunds will be made to all applicants,” Energy Bank said in a statement emailed by its main broker, IC Securities.

The lender will raise capital to meet the Bank of Ghana’s requirement through a private placement, it said in the statement. Source: Bloomberg