Some state institutions are likely to purchase shares in the Agricultural Development Bank (ADB) when the Initial Public Offer (IPO) resumes.
The bank is to re-launch its IPO for preferred anchor investors. This is because the IPO which ended in March, failed to meet the terms of reference for the bank’s preferred anchor investors.
The move has also become necessary due to the failure by the Board of Directors of ADB to approve offer results presented by financial advisors and lead sponsoring broker, IC Securities.
ADB earlier petitioned the Securities and Exchange Commission (SEC) for an investigation into the IPO, but it has since last week withdrawn the petition.
Citi Business News understands more government based institutions preferred for the offer include the Social Security and National Insurance Trust (SSNIT) and the Ghana Cocoa Board (COCOBOD).
ADB concluded its IPO in March after putting it on hold a number of times. The offer was to raise 390 million cedis.
The Head of Marketing and Communications at the bank, Solomon Adu Atefoe told Citi Business News that the offer has been oversubscribed by about nine percent. Proceeds are expected to be channeled into paying the Bank of Ghana’s shares as well as branch and IT infrastructure expansion projects.