Business News of Saturday, 26 December 2015
The Initial Public Offer (IPO) of Agricultural Development Bank (adb) has finally commenced.
The launch follows approval from the Securities and Exchange Commission (SEC).
The launch was put on hold several times following a number of lawsuits filed against the bank for the move.
The last suit that was filed against the launch of the offer was by MP for New Juaben South, Mark Assibey Yeboah, but was later withdrawn.
His lawyer, Alexander Afenyo Markin, who announced that at the Supreme Court in October 2015 said the decision to withdraw the case was due to assurances from management of adb to engage parliament to resolve the thorny issues.
But the reason cited was vehemently denied by lawyer for adb, Tony Lithur, who stated that his clients never held talks with the plaintiff.
The launch of the IPO started yesterday morning and will run till the end of February 2016.
adb 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 (BoG) are to be sold while another set of 75,471,698 new shares from the bank proper will also be sold at a share price of 2 cedis 65 pesewas.
According to the bank, of this amount, it will dish out 191,741 million cedis to the Bank of Ghana for its shares.
Sixty million of the cash raised will be used by the bank for expansion and refurbishment of its branch network while about 49 million cedis would be spent on rebranding and staff rationalization.
The rest of the cash 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 million cedis.
The shares can be bought at any adb branch, 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 GHS 265.00 and in multiples of 10 adb shares thereafter.