Agricultural Development Bank (adb)’s Initial Public Offer (IPO) has commenced.
The IPO commenced this morning July 3,2015.
Early this year the bank was forced to put the launch on hold after government who is majority shareholder of the bank called for a temporary suspension following agitations from workers of the bank.
[contextly_sidebar id=”97qEwcNw3uGzeujICAqnadDCmQq0LzbJ”]The bank late last month put on hold the IPO again after it announced it was launching the offer in June.
But due to a number of legal and political challenges admist agitations from some of its workers it was put on hold again.
With the legal challenges for example the member of parliament for the New Juaben South constituency, Dr. Mark Assibey-Yeboah had filed a suit at the Supreme Court insisting the Bank’s initial Public Offer should first be approved by parliament.
The MP invoked the original jurisdiction of the Supreme Court to compel the Bank to seek parliamentary approval before it proceeds with the planned public offer.
It is unclear whether that matter has been resolved but the Director General of the Securities and Exchange Commission (SEC) Dr Adu Annane Antwi confirmed to Citi Business News that the offer indeed commenced this morning a 9.
‘I can confirm that i have received a public notice which has been issued through the stock exchange that the offer is commencing today as per the offer document which was approved by SEC’.
Director General of the Securities and Exchange Commission (SEC) Dr Adu Annane Antwi
Earlier an investment banker, Mahama Iddrisu had told Citi Business News adb risk losing prospective shareholders and investors to other institutions offering profitable investment avenues following the continuous suspension of its Initial Public Offering.
According to him ‘the general economic conditions are very tough for the ordinary Ghanaian so if the offer is delayed, it means that there are so many investment avenues for now so for the many who cannot wait, they will invest their funds elsewhere.’’
The offer period for the launch according to the IPO prospectus will end on the 21st of August, 2015.
If the offer launch is successful the ‘ ADB’ stock would begin trading on the Ghana Stock Exchange on 16th of September,2015.
The bank is hoping to raise a total of 398,454,178 cedis through the IPO.
A total of 74,888,369 shares belonging to the Bank of Ghana are to be sold while another set of 75,471,698 new shares from the bank proper will also be sold at a new share price of 2 cedis 65 pesweas.
According to the bank of this amount it will dish out 191, 741 million cedis to the Bank of Ghana for its shares.
60 million of the cash raised will be used by the bank for expansion and refurbishment of its branch network.
About 49 million cedis for rebranding and staff rationalization.
The rest of the cash raised will be used for business applications-34 million, IT upgrades and other IT solutions-26 million cedis.
The rest will go into the bank’s new head office-8 million cedis, ATM expansion-16 million cedis and offer expenses – 13,480 milion cedis.
By: Vivian Kai Lokko/citifmonline.com/Ghana