Accra, Sept. 22, GNA - UT Financial Services, a non-bank finance institution, on Monday launched an Initial Public Offer to raise GH¢27 million to finance the company's branch expansion programme and acquisition of motor vehicles, office equipment, furniture and fittings. The company, which until recently was known as Unique Trust Financial Services, is putting on sale 90.2 million shares at GH¢0.30 per share.

This is made up of 80.2 million shares being relinquished by two shareholders and an additional 10 million shares to increase the capital of the company. The offer will run from September 22 to October 17.

Captain Prince Kofi Amoabeng (Rtd), Chief Executive Officer of UT, said the injection of fresh capital from the offer would be used to strengthen the company's balance sheet, expand the company's resource base for funding of new loans and expansion into new markets.

"The fresh capital will help provide investment capital to reinforce the

contributions of the various units of the company and enhance growth

generally," he said. UT already operates a branch in Germany and plans to explore

opportunities in the Nigerian market. Capt Amoabeng said UT was able to come far in its 11 years of

existence through integrity, trust and best of corporate governance practice. Besides the company has invested and continues to invest in areas that

enhance the life of Ghanaians. "This is why we believe that the time has come to allow others to be part

of the success story of UT and to create wealth from the flow of dividend and shareholder value creation," he said. The listing of UT Financial Services will give the company a market capitalisation of GH¢63.2 million. The company comes to the market with a price earnings ratio of 14.25,

which is lower than all but one of the eight other financial stocks on the Ghana Stock Exchange. The average P/E ratio for financial stocks on the Accra bourse is 20 with

the highest of the financial stocks reaching 30. "This means that UT's shares are being offered at a relative low price to other listed stocks in the financial sector, despite its strong credentials as an outstanding equity investment," Mr Ken Ofori-Atta, Chairman of DataBank, Lead Manager of the offer, said.

In 2007, UT's return on average invested capital was 247 per cent,

significantly higher than that achieved by the banking sector last year. The company is envisaging a growth of 25 per cent for the next five years.

The Most Reverend Dr Robert Aboagye-Mensah, Presiding Bishop of the Methodist Church, who launched the offer, said UT's ability to collect loans advanced to people was sending the right signal to the public that monies once given must be paid back.