ADB extends IPO

The Agricultural Development Bank Limited (ADB) has extended its Initial Public Offer (IPO).

The IPO which commenced on 23rd December, 2015 was scheduled to have ended on 26th February, 2016.

According to a statement from the bank’s marketing and communications wing ‘as a result of the extension, the Offer Period will now end on 24 March, 2016’.

According to the bank the extension has been approved by the Securities and Exchange Commission (SEC).

A total of 74,888,369 shares belonging to the Bank of Ghana 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 on the Ghana Stock Exchange (GSE).

Citi Business News had earlier reported that patronage of the bank’s shares were low with barely a few weeks to the end of the IPO.

Head of Research at UMB Stock Brokers, Nana Kofi Agyeman Gyamfi who also confirmed the low patronage told Citi Business News that though there were indications of investors buying the shares, it had not been as high as expected.

“For those who wanted to buy it’s not an issue of whether they are interested in it or not.

For some of our clients who are not in the country, they made funds available that when the IPO opens, we should buy the shares for them…This is because there was a lot of anticipation and how other banking stocks had fared. But we thought of helping them diversify the portfolios they have invested in.”

It’s therefore difficult to say whether interested or not interested; though others complain about the price which they felt was a bit expensive but those who are interested are buying,” Nana Kofi Agyeman Gyamfi said.

Meanwhile the shares can be bought at any ADB branch, any Standard Chartered Bank (“SCB”) branch, IC Securities (Ghana) Limited or any Licensed Dealing Member (“LDM”) of the Ghana Stock Exchange (“GSE”).

By:  Vivian Kai Lokko/