What is an investment banks in Ghana? How profitable is investment banking in Ghana?
What are the major industries for Ghanaian investment banking? If you want to find
the answers to these questions, you have come to the right place.
What Is An investment Bank?
Investment bank is a specific division of banking related to the creation of capital for other
companies, governments and other
entities. Investment banks underwrite new debt and equity securities for all types of corporations, aid in the sale of securities , and help to
facilitate mergers and
acquisitions , reorganizations and broker trades for both institutions and private investors.
Investment banks also provide guidance to issuers regarding the issue and placement of stock.
Many large investment banking systems in Ghana are affiliated with subsidiaries of larger banking institutions, and many have become household names.
Broadly speaking, investment banks in Ghana assist in large, complicated
financial transactions. This may include advice as to how much a company is worth and how best to
structure a deal if the investment banker’s client is
considering an acquisition, merger or sale. It may also include the issuing of securities as a means of raising money for the client groups, and creating
the documentation for the Securities and Exchange Commission necessary for a company to go public.
Moreover, the investment banks in Ghana stands to gain profit too, as it will generally price its shares at a markup from the price it initially paid. In doing so,
it also takes on a substantial amount of risk.
Though experienced analysts use their expertise to accurately price the stock as best they can, the investment bank can lose money on the deal if it turns out it has overvalued the stock, as in this case it will often have to sell the stock for less than it initially paid for it.
Now you have known what investment banking is all about.
In essence, investment banks is the bridge between enterprises (both big and small enterprises) and the investor. Their main importance are to advise businesses and governments on how to meet their financial challenges and to help them
procure financing , whether it be from stock and shares offerings, bond issues or derivative products.
Importance Of Investment Banks In Ghana.
1. Serve As Advisor:
Deciding how to raise capital a major decision for any company or government. In most cases,
they lean on an investment bank – either a large firm or banker – for guidance.
Taking into account the current investing climate, the bank will recommend the best way to raise
funds. This could entail selling an ownership stake in the company through a stock offer or borrowing from the public through a bond issue. The investment firm can also help determine how to
price these instruments by utilizing sophisticated financial models.
2. Research Team:
Larger investment banks in Ghana have large teams that gather information about companies and offer recommendations on whether to buy or sell their stock. They may use these reports internally but can also generate revenue by selling them to hedge funds and mutual fund managers.
3. Wealth Management:
Some of the same banks that perform investment banking also cater to retail investors. Through a team of financial advisors, they help individuals and families save for retirement and other long-term needs.
4. Trading and Sales:
Most major firms have a trading department that can execute stock and bond transactions on behalf of their clients.
Investment banks will often compete with one another for securing IPO projects, which can force them to increase the price they are willing to pay to secure the deal with the company that is going public. If competition is particularly fierce, this can
lead to a substantial blow to the investment bank’s bottom line .
Most often, however, there will
be more than one investment bank underwriting securities in this way, rather than just one. While
this means that each investment bank has less to gain, it also means that each one will have reduced risk.
The Major Industries For
Investment Banking In Ghana:
a. food production, restaurant business.
b. building business.
c. real estate
d. fashion industry
e. agricultural business
f. education (private schools and
g. car business
h. music and film industry
i. logistics business etc
These are the top Investment Banks in Ghana:
1. Bank Of Ghana Ltd
2. Barclay's Bank Ltd
3. Energy Bank Ltd
4. First Atlantic Merchant Bank Ltd
5. Stanbic Bank Ltd
6. The Trust Bank Ltd
7. Prudential Bank Ltd
8. Société Générale Bank Ltd
9. United Bank Of Africa Ltd
10. Standard Chartered Bank Ltd
11. Fidelity Bank Ghana Ltd
12. Ghana Commercial Bank Ltd
13. Sovereign bank Ltd
14. Zenith Bank Ltd
15. Capital bank Ltd
16. HFC Bank Ltd
17. Stanbic bank Ltd
18. UBA Ghana Ltd
19. Access bank Ltd
20. Guaranty Trust Bank Ltd
21. Eco Bank Ltd
22. First National bank Ltd
23. Fidelity Bank Ghana Ltd
24. Unibank Ghana Ltd
25. Agricultural Development Bank Ltd
We hope that the information given above has broadened your knowledge of the sphere of best investment banks in Ghana. This area can be very profitable in Ghana, however, it requires knowledge, strategy and skills to succeed the this field of investment banking.