Archived Bulletins

Students research Ghanaian IPO's

By Yawa Osebreh
Class of 2006

Alongside classmates Fredrick Deegbe and Eric Acheampong, I was privileged to undertake research into the Initial Public Offering of the Ghana Commercial Bank (GCB).  Ghana Commercial Bank is one of the largest banks in the country and was originally Government owned.  The bank's Initial Public Offering was necessitated by the Divestiture Program being implemented by the government in 1996.  Thus, the research project also allowed our team to learn more about the Divestiture Process.

Ghana Commercial Bank launched its Initial Public Offering in 1996. The IPO was overwhelmingly successful with an oversubscription rate of 42%, the highest in the Ghana Stock Exchange’s history at the time.  GCB’s floatation seems to have paid off.  The European Market Research Centre (EMRC) conferred the BANKER OF THE DECADE AWARD on GCB for the period 1992-2001.  Between 1996 and end of April 2002, GCB's share price appreciated by about 250%.  In 2001 GCB became the most profitable bank in Ghana reinforcing its position as a leader in the industry.  No wonder the bank is considered a national treasure!

This project was amazing because it allowed our group to see how the knowledge we had acquired in the classroom was actually put into action in the real world.  Finance Lecturer Mr. Torvinyo did an excellent job discussing how the mechanisms of Initial Public Offerings were put into place.  He really knew how to make us hungry to know more than what we were able to discuss in the classroom.  I think I speak for the Business Class of 2006 when I say a big “Ayekoo” to Mr. Torvinyo for a job well-done.

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