The Bank of Ghana (BoG) is to still own a stake in the Agricultural Development Bank (ADB) despite the completion of the bank’s Initial Public Offer (IPO) early this month.
It follows the inability of ADB to achieve a full subscription of its Initial Public Offer on Monday, December 5th, 2016. The Bank of Ghana currently possesses a 9.5 percent stake in ADB; prior to that, it had 48.17 percent stake in the bank.
“We had hoped to raise about 200 million net into our operations and we achieved that; what happened is that the existing shareholders (Bank of Ghana) who had hoped to sell off their shares completely I think will still end up holding some shares so what will go to them is what will reduce,” Managing Director of ADB, Daniel Asiedu told Citi Business News in an exclusive interview. “But technically speaking, it doesn’t affect how much we are seeking and we are believing that overtime, it will sold to the public on the secondary market,” he added.
ADB, obtained about 326 million cedis from the 380 million cedis target for its IPO. The subscription rate was over eighty percent. The Bank of Ghana is among five other institutional investors with stakes in ADB.
The other major investors include the Government of Ghana – 32.296percent; Belstar Capital -24percent; Starmount Development Company Limited -11 percent. Others are; SIC Financial Services – 10 percent and EDC Capital – 6 percent. ADB becomes the eighth bank to list on the Ghana Stock Exchange. But Daniel Asiedu explains his outfit will be robust in working to meet investors’ needs and sustain the performance of the bank’s stock.
“I think it’s all about the potential each institution has our ability to do well or not will depend on how investors see the bank’s performance. But we are hoping that we will at all times drive growth and ensure that we release results that will encourage investors,” he said.
Meanwhile the subscription of two of the four hundred retail investors, are to be refunded. It is unclear what reasons led to the refund but information available to Citi Business News indicate that they couldn’t be allocated following the continuous share of Bank of Ghana in the bank.
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