MERCHANT BANK TO GO PUBLIC

Activities on the Ghana Stock Exchange (GSE) are expected to be bolstered further as Merchant Bank Ghana Limited is set to list on the bourse next year.

The financial intermediary which was among the first three indigenous banks to meet the Bank of Ghana’s minimum capital requirement of GH¢25 million for local banks, is expected to raise a minimum of $200 million on the capital market for long-term development.

The flotation of the bank on the Accra Bourse will enable individual and institutional investors have the opportunity to own shares in the country’s premier merchant bank.

It is however unclear whether the Government would reduce its participation in the premier merchant bank by offloading many of its shares.

Business Guide learnt that the Social Security and National Insurance Trust (SSNIT) which is the majority shareholder of the bank with 55 percent shares, has announced its intention to reduce its shares to 35 percent.

Peter Illiasu, Managing Director of the bank, told journalists in Accra last week that his vision is to grow the bank into a world-class one like the HSBCs, Citi Banks and the Credit Suisses.

“We want to make Merchant Bank the best place for shareholders to invest; the best place for people to work; a place to benchmark for regulators; and the best place for customers to do business,” he stated, adding, “We are building a bank that can easily compete with multi-nationals with branches in West Africa.”

Throwing more light on an intended branch expansion programme, Mr Iliasu said plans are far advanced to grow the branch network of Merchant Bank from 22 to 30 by the close of this year and also make it a customer centered one.

“We will expand and modernize our retail proposition and also keep our commitments to customers, employees, shareholders and the community,” he added.

He further touched on plans to strengthen the various business units of the bank to reinforce its true one bank position.

The Merchant Bank MD hinted that his outfit would soon partner another bank to help transfer skills and knowledge to its workers and add value to its operations to enable the financial entity take advantage of the $15 billion that the nation is expected to get from the oil business in the next two years.

Merchant Bank Ghana Limited, incorporated on June 10, 1971, currently provides a comprehensive range of banking services to its customers and clients, using its worldwide network of correspondent banks and their agencies.

Its banking services include domestic and international banking operations, treasury services, money and capital market operations, hire purchase and leasing services, and foreign remittances.

The bank has three wholly-owned specialized subsidiaries namely Merban Investment Holdings Limited (MIHL), Merban Stockbrokers Limited (MSL) and Merban Finance and Leasing Company Limited.

Merban Investment Holdings Limited (MIHL) deals in funds/portfolio management, money market operations, investment advisory services, trustee services and custodial and nominee services.

The Merban Stockbrokers Limited (MSL) deals in brokerage services, underwriting of new issues, and investor search & joint venture arrangements while the Merban Finance and Leasing Company Limited deals in hire purchase and leasing services.

The bank has taken advantage of the opportunities offered by the introduction of universal banking business in Ghana and fully developed all three areas of universal banking, namely retail, corporate and investment. It currently employs 463 persons in Ghana.

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