John Kofi Mensah, ADB MD
AGRICULTURAL DEVELOPMENT Bank (ADB) has made a private placement of 39,076,924 ordinary shares of no par value to the Ghana Amalgamated Trust (GAT) to raise GH¢127 million.
The flotation of
the shares, which comes at a placement price of GH¢3.25 per share, is part of
ADB’s recapitalization exercise and is billed to support its holistic growth.
Unlike
Initial Public Offerings (IPOs), which are open to the general public, the
private placements are targeted at specific investors who usually invest huge
sums of money.
Thus, GAT will have representation on the board
of directors of ADB who will provide the strategic direction of the bank.
According to ADB,
this is pursuant to Regulation 40 of the Ghana Stock Exchange Listing Rules,
2006.
The private
placement starts on Friday, January 10, this year, and ends on Tuesday, January
14, with listing of shares planned for Tuesday, January 21.
The equity
injection was approved by the shareholders of ADB at its annual general meeting
on August 28, last year, and the Securities and Exchange Commission (SEC) on
January 2, this year.
Serengeti Capital
is the lead manager and sponsoring broker for the offer.
A communication
by the bank said, “Trading will not be suspended during the offer period; hence
shareholders on the register of members of Agricultural Development Bank may
continue to trade their shares on the exchange as usual. The new shares will be
admitted to the main market of the Ghana Stock market and will rank pari passu
to existing ordinary shares in ADB in all respects. Following the admittance of
the new shares, total number of ordinary shares in issue will be 300,798,407.”
GAT
was created by the government to provide funding support to update local banks
that were unable to meet the BoG’s GH¢400 million minimum capital requirement.
Five banks – Prudential, UMB, NIB, ADB and
OmniBSIC – are billed to receive various sums of money to complement their
capital levels to meet the regulator’s approved standard.
GAT
will be receiving the funds from the Finance Ministry after presenting a plan
to raise the money through a bond sale.
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