The Agricultural Development Bank (ADB), has re-launched its Initial Public Offer (IPO) after failing to successfully complete the process a number of times.
The offer which was re-launched today [November 24, 2016], seeks to raise about 380 million cedis.
Managing Director of ADB, Daniel Asiedu who confirmed the re-launch in an exclusive interview with Citi Business News said the bank is expecting a net return of 200 million cedis after the offer.
“As a bank, we expect a net of 200 million cedis; the whole IPO will raise about 380 million cedis but because Bank of Ghana is selling down its shares, part of the money will be going to them while we retain the remaining amount,” he said.
The last attempt to re-launch the IPO was in May this year where the bank rejected the share price investors offered.
Out of the 380 million cedis the bank is hoping to raise about 180 million cedis will go to the central bank which is giving up its shares in the bank.
In his first interview on the IPO since assuming office as MD of ADB, Mr. Daniel Asiedu also confirmed the participation of some public and private institutions.
He would however not readily disclose which institutions and how much each of them is seeking to acquire.
“A couple of institutions both private and public sector have shown interest in the shares of ADB and at this stage it is a bit too early; but for the purposes of confidentiality, I am unable to confirm the names of these institutions,” he observed.
“Most people are aware that ADB is a good brand and we are sure that very soon ADB will be one of the best brands if not the best brand…naturally it will attract interest from investors,” the ADB MD added.
Though the bank had been unsuccessful with its plan a couple of times, its Managing Director explains to Citi Business News it is highly optimistic of the fortunes of the IPO this time round.
According to him, though the processes were inconclusive, the oversubscription indicates confidence of investors in the bank.
“What really happened was that it was oversubscribed I think it was the issue of a unit price that we had to contend with…This time around, anybody who have shown interest is clearly aware that anything short of the listed price for each share is non-negotiable,” Mr. Asiedu further intimated.
Proceeds of the offer are expected to be channelled into expanding the bank’s operations.
These include; upgrading IT systems, branch upgrade and software improvement.
The offer closes on Monday, December 5, 2016 and the bank hopes to commence the processes for listing by 7th December 2016.
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(Via: CitiFM Online Ghana)