Barring any last minute hitch, the Agricultural Development Bank (ADB) will list on the Ghana Stock Exchange (GSE) on Monday, April 25, 2016.
The bank, in its Initial Public Offer (IPO), targeted to raise a maximum of GH₵400m but received subscriptions of GH₵440m.
Institutional/corporate subscriptions accounted for 75% while retail subscriptions make up the remaining 25%.
The listing will allow ADB to expand its customer base and give Ghanaians a sense of ownership while significantly increasing its equity base
Industry watchers commended government for taking the bold decision to let go of its shares in ADB.
The bold initiative falls in line with calls by economic analysts that government should divest its stakes in state-owned enterprises through the stock market to deepen the market and broaden the local investor base.
Information gathered indicates that the process to list on the GSE is going through approval by the bank’s board, shareholders, as well as the Securities and Exchange Commission (SEC).
ADB set out to raise GH₵300m, with room for an additional GH₵100m, to make the final amount GH₵400m.
Therefore, after completion of allotments totalling GH₵400m, the remaining GH₵40m will be returned to unsuccessful applicants.
ADB will utilise GH₵300m while GH₵100m will go to the Bank of Ghana (BoG) and the Government of Ghana.
The amount raised from the IPO would enable the bank meet its regulatory capital requirement, as well as help ADB get back on a solid footing.
A total of 74,888,369 shares belonging to the Bank of Ghana were sold while another set of 75,471,698 new shares from the bank proper were also sold at a share price of GH₵2.65.
Source: The Finder