Business News of Wednesday, 25 May 2016
The Securities and Exchange Commission (SEC) says it is working on the Agricultural Development Bank (ADB)’s Initial Public Offer (IPO) report submitted to it by the Transaction Advisor and the Issuer.
According to the Commission, it will announce its findings to the public after concluding its work on the report. It follows the withdrawal of a petition on the IPO results the Bank filed with the Commission on May 19th, 2016.
The Board of Directors of ADB failed to approve the offer results presented by the financial advisors and lead sponsoring broker; IC securities after the bank concluded its IPO in March this year.
A statement from the Securities and Exchange Commission and copied to Citi Business News said the Commission is working with the Transaction Advisor and the Issuer. It added, the SEC will inform the public on the outcome of the findings subsequently. ADB concluded its IPO in March after putting it on hold a number of times.
The offer was to raise 390 million cedis. The Head of Marketing and Communications at the ADB, Solomon Adu Atefoe told Citi Business News the offer has been oversubscribed by over nine percent.
Proceeds of the offer are expected to be channeled into paying the Bank of Ghana’s shares and ADB’s IT and branch expansion projects.
Meanwhile Citi Business News understands some state institutions including SSNIT and COCOBOD are likely to buy shares of ADB as anchor investors when the
bank relaunches its IPO.
This has also become necessary because the already concluded IPO, failed to meet the terms of reference for an anchor investor. It is unclear when the ADB will carry out this exercise as it is yet to receive clearance from the industry regulator, that is, Securities and Exchange Commission.