Agriculture Development Bank’s plan to sell some of its shares to the public could suffer low patronage if it goes ahead with its Initial Public Offering.
This is attributable to the challenges surrounding its attempt to list on the Ghana Stock Exchange.
Workers of the Bank led by the Union of Industry, Commercial and Finance Workers of Ghana fiercely opposed the decision as well as the Bank’s decision to sell its Head Office building, among others.
Speaking on Business Trends on Wednesday 6th May 2015, Investment Analyst Mahama Iddrisu said the development would adversely affect not only the ADB’s future listing but that of other state institutions.
Most investors, he says, will be more cautious than they would ordinarily be if state-owned institution announces a decision to go onto the market.
He expressed worry about the implications the developments at ADB could have for future offerings saying the revenue generation agenda not only for state institutions that would want to list but also shareholders.
Mr. Iddrisu asserted that the success of any IPO is enormously contingent on the timing hence the bank should get the timing right.
He added that if this is the appropriate time for the bank to go public, then all efforts should be made to bring it to fruition otherwise any delay would get investors divert their investments into other ventures.
Mahama Iddrisu however indicated that if the ADB is given the opportunity to list, it will bring some variety to people who would want to divest their investments. This he said “could be good news for the market and prospective investors. Now there are a lot of asset management companies and this would present them with the opportunity to choose from a number of investments for their clients and to make them realized the return on their investments”.
This article has 0 comment, leave your comment.