In a move geared towards creating liquidity for its high priced shares, the shareholders of Ecobank Transnational Incorporated (ETI) have approved a share split that would have in issue, five (5) new shares for every one held. This approval was granted at the Annual General Meeting of the company held recently in Accra Ghana, where its shareholders also gave a nod to a proposed public offer, meant to raise a total of $3 billion in debt and equity.

The purpose of the offer, the company management said, is to further strengthen its network expansion across the continent for its pan-African banking drive. The management stated that it had become necessary for the bank to reinforce the capital base of ETI to be able to finance the growth of the institution. Speaking on the 1:5 share split, the Chief Executive Officer of ETI, Mr. Arnold Ikpe, noted that the move would, amongst other things, make the share less heavy. The share price of the only company under the foreign listings sector of the Nigerian Stock Exchange, has oscillated between the N268.85 and N198.90 marks this year so far.

While addressing shareholders at the company’s AGM in which, two cents as dividend per share was approved, Mr. Ikpe noted that the dividend of the company could be higher, but for the conservative policy of the group on dividend, which has provided on the alternative a credible history of capital appreciation that has seen the fortunes of the group grow from $300 million to about $2.9 billion in ten years. The CEO hinted that the main key areas the group hopes to make the difference and add value are to improve efficiency, growth and value to shareholders.

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