First Atlantic Bank IPO Reopens Ghana’s Equity Market After Seven-Year Freeze

 

Ghana’s equity market has recorded its first initial public offer in seven years, with First Atlantic Bank PLC listing on the Ghana Stock Exchange (GSE), ending a prolonged period of inactivity that had raised concerns about the depth and relevance of the local stock market.

The December 19, 2025 listing comes at a symbolic time for the exchange, coinciding with the GSE’s 35th anniversary and a decade of operations of the Ghana Fixed Income Market. More importantly, it marks a return to equity capital raising after the last IPO in 2018, during a period characterised by financial sector restructuring, weak investor confidence and limited risk appetite.

A Long Pause in Equity Capital Raising

Managing Director of the GSE, Abena Amoah, acknowledged that the absence of IPOs for seven years had been a structural weakness for the market, even as trading activity and fixed income listings expanded.

She said the First Atlantic Bank IPO represents a reset for the equity market, demonstrating that firms can still raise long-term capital through public listings when governance standards, disclosures and investor engagement are strong.

The timing also aligns with a strong performance on the exchange. The GSE Financial Stock Index has returned 91.65 percent year-to-date as of December 16, while the broader equity index is up 78 percent, placing Ghana among the best-performing equity markets globally in 2025.

Regulator Sees Broader Financial System Benefits

Bank of Ghana Governor, Dr. Johnson Asiama, described the listing as more than a corporate milestone, arguing that it strengthens the link between banking sector development and capital market growth.

According to him, broader ownership structures improve transparency and resilience in the financial system while reducing concentration risks that have historically amplified vulnerabilities in the sector.

He noted that as Ghana’s economy expands and financial intermediation becomes more sophisticated, equity financing is expected to play a larger role alongside traditional bank funding, particularly for growth-oriented institutions.

Navigating a Demanding Listing Process

First Atlantic Bank’s Managing Director and CEO, Odun Odunfa, said the IPO process was intensive, involving extensive regulatory reviews by the Bank of Ghana, Securities and Exchange Commission, National Pensions Regulatory Authority and the GSE.

While describing the process as demanding, he said the scrutiny helped reinforce market discipline and investor confidence, particularly among institutional investors who conducted extensive due diligence before committing funds.

Oversubscription Signals Selective Investor Appetite

The bank raised GHS786 million, exceeding its GHS742 million target by about six percent. The offer combined secondary share sales by existing shareholders with new equity capital.

Market analysts say the oversubscription reflects selective investor appetite rather than broad-based exuberance, with investors favouring institutions that demonstrate strong governance, clear strategies and credible growth prospects.

Using the Market as a Growth Platform

Following its listing, First Atlantic Bank plans to pursue growth across three areas: digital banking, regional expansion and workforce development.

The bank is positioning itself as a technology-driven institution, with plans to expand beyond Ghana into Liberia, Sierra Leone and other West African markets, while investing in staff development and ethical standards to support sustainable growth.

Implications for the Broader Market

The GSE believes the successful IPO could help rebuild confidence among potential issuers that have stayed on the sidelines since the banking sector clean-up and subsequent market volatility.

For prospective companies, the message is clear: access to long-term equity capital remains viable, but only for firms prepared to meet higher governance, disclosure and investor engagement standards.

If followed by additional listings, First Atlantic Bank’s IPO could mark the beginning of a gradual revival of Ghana’s equity market as a channel for funding corporate expansion and supporting long-term economic growth.