The Agricultural Development Bank’s Initial Public Offer (IPO) has commenced. The bank announced on Friday July 3, 2015 that the offer of more than 80 million shares on the Ghana Stock Exchange had commenced.
Early this year, the bank was forced to put its plan of the launch of the IPO on hold after the government who is a majority shareholder called for a temporary suspension following agitations from workers of the bank.
Again the bank was forced to put the IPO on hold on a number of occasions due to a number of legal and political challenges amidst agitations from some of its workers.
With regards to the legal challenge, the Member of Parliament for New Juaben South, Dr Mark Assibey Yeboah has filed a suit at the Supreme Court insisting the IPO should first be approved by Parliament.
It is unclear whether the matter has been resolved but the Director General of the Securities and Exchange Commission (SEC), Mr Adu Anane Antwi told Accra based radio, Citi FM that the offer has indeed commenced.
“I can confirm that we’ve received the public notice which has been issued that the offer is commencing today as per the offer document that has gotten SEC’s approval,” Mr Antwi said.
Per the IPO prospectus, the offer will end on August 21, 2015. The IPO launch if successful will see the ADB stock likely to start trading in September on the Ghana Stock Exchange. The bank is hoping to raise over GH?398million through the IPO.
A total of 74,888,369 shares belonging to the Bank of Ghana are to be sold while another 75,471,698 new shares from the bank are also to be sold at a new share price of GH?2.65p.
Below is the full release from ADB on the share offer.
The Agricultural Development Bank Limited (“ADB”) today announces the commencement of its Initial Public Offer (“IPO”) to enable ADB list on the Ghana Stock Exchange.
The public share offer of ADB consists of:
1. A sale of 74,888,369 existing ordinary shares of no par value at GH? 2.65 per share;
2. An offer for subscription of 75,471,698 new ordinary shares of no par value at GH? 2.65 per share issued and fully paid; and
3. A listing by introduction of 80,563,155 existing ordinary shares (collectively “the ADB Shares”) on the Ghana Stock Exchange.
Shares can be bought at any ADB branch, any Standard Chartered Bank branch, IC Securities (Ghana) Limited or any Licensed Dealing Member of the Ghana Stock Exchange. Each application under the IPO must be for a minimum of 100 ADB Shares amounting to GH? 265.00 and in multiples of 10 ADB Shares thereafter.
The timetable for the IPO is as follows:
Offer Open: 3rd July 2015 9:00am • Offer Close: 21st August 2015 5:00pm
Further details on the IPO are contained in the Offer Prospectus which can be obtained from any ADB branch, any Standard Chartered Bank branch, IC Securities (Ghana) Limited, any Licensed Dealing Member of the Ghana Stock Exchange or www.adbipo.com.
Before deciding whether to apply for the ADB Shares, you should consider whether the ADB Shares are a suitable investment for you. Their value can go down as well as up.
Past performance is not necessarily indicative of future performance. If you need advice, you should consult a suitable professional advisor.
Source: Graphic.com.gh
