First Atlantic Bank Expands Across Africa After Successful IPO

First Atlantic Bank is setting its sights on expansion across Africa, fueled by its recent Initial Public Offering (IPO) and listing on the Ghana Stock Exchange (GSE). The bank’s Managing Director and CEO, Odun Odunfa, revealed the ambition during a celebratory lunch held at the Labadi Beach Hotel on Friday, December 20.

Mr. Odunfa explained that the IPO isn’t just about raising capital; it’s a strategic move to strengthen governance and broaden the bank’s investor base – crucial elements for competing in multiple African jurisdictions. “In addition to capital, and using that as a platform for our expansion plans, we’re ambitious,” he said.

The bank is already making significant investments in digitization, preparing regional markets, and developing its workforce. “We are investing heavily in digitization. We’re investing in our original expansion plans across Africa, West Africa, and Africa. We’re also investing a lot in the human capital, fellow Ghanaians, developing capacity, skills, and so on of our people,” Mr. Odunfa stated.

He emphasized the importance of increased Ghanaian ownership, believing it will bolster the bank’s foundation as it ventures into new territories. “With coming on board of Ghanaian investors, both institutional and individual, we’ll have more belief. We’ll have more support. We’ll have more business. So on many levels, this is a Ghanaian institution, and we want to be clear that that is what it is,” he added.

The positive response to the IPO, according to Mr. Odunfa, demonstrates confidence in both First Atlantic Bank’s business model and Ghana’s improving economic climate. He highlighted the cedi’s performance, declining inflation, and proactive regulatory measures by the Bank of Ghana as indicators of macroeconomic stability. “You’ve seen how the cedi has trended. You’ve seen how inflation has trended. You’ve heard how our regulator has positioned itself… I think it’s a good time for Ghana,” he noted.

While acknowledging shareholder expectations for returns, Mr. Odunfa assured that the bank will prioritize sound risk management and governance. “The only thing we can promise investors is that we’re going to run a decent business, a proper business… We will aspire to meet market expectations, but we will not cut corners to do so. We’re going to build to last,” he affirmed.

The bank’s journey to this point included a restructuring and merger with Energy Bank to meet the Bank of Ghana’s capital requirements. Mr. Odunfa stated this experience underscored the importance of discipline in pursuing growth. “Growth does not come easy. If you’re going to do a good thing, you have to go through a process… If you do things properly, you will do well, and people would recognize it in the long run,” he said.

Founded in 1994 and becoming a fully licensed universal bank in 2011, First Atlantic Bank views its local listing as both strategic and symbolic. “We’re Ghanaians, we’re in Ghana. Where else would we list?… If Ghanaians don’t believe in the Ghanaian Stock Exchange, nobody else will,” Mr. Odunfa stated, reinforcing the bank’s commitment to its roots as it expands its reach.

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