(Ecofin Agency) - Fidelity Bank Ghana plans to launch an initial public offering (IPO) for its listing on Ghana Stock Exchange by 2020.

The operation should allow the financial institution to raise nearly 70 million Ghanaian cedis ($16 million).

The bank's shareholders approved the fund-raising exercise on April 20, 2018. Moreover, Jim Baiden, the bank's MD indicated that Fidelity Bank would strengthen its capital with nearly 20 million Ghanaian Cedis ($4.4 million) drawn from surplus.

This measure will allow Fidelity Bank of Ghana to match the minimum capital requirements required by the Ghanaian central bank. The latter, in September 2017, asked the country's commercial banks to raise their minimum capital level from 120 million Ghana Cedis ($27 million) to 400 million Ghana Cedis ($ 90.4 million).

Chamberline Moko