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There have been several corporate actions on the Ghana Stock Exchange (GSE), these
include;
In a Bonus Issue, shareholders are awarded additional securities free of any payment. It is
sometimes referred to as "Scrip Issue" or "Capitalization Issue" and is effectively a free
issue of shares paid for by the company issuing the shares out of capital reserves. It is
somehow similar to Stock Splits or Stock dividends.
The Bank announced a Bonus issue on March 31, 2015 in a ratio of 1 for 10 (one new share
for every 10 existing shares). The Company issued additional 33,387,375 shares through
the Bonus issuance.
0.98
=
1 + 0.099994
= GHS0.8909
Through Rights offerings, companies seek to increase their capital by issuing new
securities or shares. It results in capital inflow and increase in the number of shares
outstanding as well as the overall market capitalization of a company.
Existing shareholders are given a chance to maintain their stake in the company to
prevent dilution. The Right provides the opportunity to buy a proportional number of
additional shares at a subscription price usually at a discount within a subscription period.
On the payment date, the shareholder who exercised their rights will receive the ensuing
securities and will pay the company the exercise price. Unexercised rights lapse.
GOIL has added 139,639,640 ordinary shares to the companys number of issued shares
through a renounceable rights issue. This brought the total issued shares to 391,863,128.
The offer was valued at GHS 1.24 per share in the ratio of 0.5536 new shares for every 1
existing share. The company at the end of the issuance raise GHS 176,574,018.42 from an
expected GHS 173,153,153.60 representing an oversubscription of 0.98%.
1.24 + 0.8359
=
1.5536
= GHS 1.3362
= .
Alternatively,
Pricing of Rights
Number of shares outstanding prior to rights issue 252,233,488 a
Price per share before right issue GHS 1.51 b
Number of rights for ev ery share owned 1 c
Number of rights needed to buy a share 0.5536 d
Price per share with rights GHS 1.24 e
Formulae
=
Value of Equity after rights issue
= + ()
Value of a Right
=