After seven years without a single equity initial public offer, Ghana’s capital market has finally broken its IPO drought, with First Atlantic Bank PLC making a historic debut on the Ghana Stock Exchange (GSE) and signalling renewed confidence in the country’s equity market.

The listing coincided with the 35th anniversary of the GSE and the 10th anniversary of the Ghana Fixed Income Market, underscoring what market operators described as a landmark moment for Ghana’s capital markets.

A Market Without IPOs for Seven Years

Managing Director of the GSE, Abena Amoah, described the listing as a turning point, noting that the market had not seen an equity IPO since 2018.

“For seven years, our market hasn’t seen an equity IPO. What is a stock exchange if it’s not ringing bells for IPOs?” she said, adding that First Atlantic Bank had “broken the jinx” and paved the way for other companies to follow.

She said the return of IPO activity comes at a time of renewed momentum on the exchange, with the GSE Financial Stock Index posting a year-to-date return of 91.65 percent as of December 16, while the overall equity index is up 78 percent, making Ghana one of the best-performing equity markets globally this year.

According to her, the listing sends a strong signal that investor confidence is returning and that the GSE remains a credible platform for companies seeking long-term growth capital.

BoG Sees Deeper Capital Market-Banking Linkages

Governor of the Bank of Ghana, Dr. Johnson Asiama, who was the special guest of honour, said the listing strengthens Ghana’s financial system by deepening the link between banking and capital markets.

“By taking this step, First Atlantic Bank is strengthening its capital base, broadening ownership and contributing to the deepening of Ghana’s capital market,” Dr. Asiama said, adding that diversified ownership structures will enhance resilience and reduce concentration risks in the banking sector.

He expressed optimism that more banks would tap the equity market in the coming years as financial intermediation becomes more sophisticated, aligning capital market development with national economic objectives.

A Tough Journey Through Regulation and Due Diligence

In an interview with The High Street Journal, Managing Director and CEO of First Atlantic Bank, Odun Odunfa, described the IPO process as demanding but rewarding.

“It’s been a tough journey — getting all shareholders aligned and processing approvals from the Bank of Ghana, SEC, NPRA and the GSE,” he said, adding that while regulatory scrutiny was intense, it was necessary and ultimately supportive.

“The regulator always gives you a tough time, but that’s their job. Once you meet the requirements, you get the approvals,” he said.

Oversubscribed Offer Raises GHS786m

First Atlantic Bank raised GHS786 million from the market, exceeding its initial target of GHS742 million, representing an oversubscription of about six percent. The offer comprised a mix of shares sold by existing shareholders and fresh capital injected into the bank.

Odunfa said the strong demand reflected growing investor appetite for well-governed financial institutions and demonstrated that “there is money in Ghana looking for quality assets.”

Growth Strategy: Digital, Regional, People

Looking ahead, the bank plans to leverage its listing to drive growth across three strategic pillars: digitisation, regional expansion and people development.

The bank aims to consolidate its position as a leading digital bank, expand into West Africa starting with Liberia and Sierra Leone, and invest heavily in staff capacity, ethics and professional standards.

“We expect more visibility, better access to capital and a stronger platform for growth,” Odunfa said.

A Signal to Prospective Issuers

The GSE said the listing sends a powerful message to prospective issuers that the capital market is open, liquid and ready to support companies with strong governance and clear growth plans.

“The capital markets work,” Amoah said. “We are transparent, efficient and ready to support bold issuers prepared to engage investors with clarity and discipline.”

Market watchers say First Atlantic Bank’s successful IPO could help unlock a pipeline of new listings, potentially ending years of limited equity activity and revitalising Ghana’s stock market as a true engine for long-term capital formation