The Agricultural Development Bank (ADB) has assured subscribers of the IPO that its transaction advisors will soon issue a notice on the modalities for a refund of their monies.
It follows the bank’s rejection of offers made by subscribers at an offer price of 2 cedis instead of the 2 cedis 65 pesewas per share as contained in its prospectus.
The Securities and Exchange Commission (SEC), on Tuesday directed the refund of monies to subscribers of the bank’s IPO after the bank rejected offers purchased at 2 cedis.
An earlier statement issued by the SEC and copied to Citi Business News indicated that ADB received a total subscription of about 438 million cedis at the close of the offer.
However with the decision of the bank to reject the offers made at 2 cedis which amounted to about 435 million cedis, the bank was unable to satisfy the minimum subscription of 100 million cedis set in the prospectus to enable it proceed to list on the Ghana Stock Exchange.
But ADB in a statement signed by its Board Chairman, Nana Soglo Alloh IV and copied to Citi Business News noted that its lead Financial Advisor, “IC Securities will shortly issue a notice to subscribers of the IPO on the modalities for the refund.”
The bank however stated “investors, customers and the general public are therefore assured that another opportunity will soon be presented to them to be part owners of this bank which has a huge potential.”
The recent challenges by the bank started when its Board of Directors failed to approve offer results and petitioned the SEC over the matter. It has since withdrawn the petition from the SEC.
Meanwhile ADB says “it is desirous and determined to be part of the capital market through the listing of its shares on the Ghana Stock Exchange and is therefore in consultation with its shareholders, the Securities and Exchange Commission and other stakeholders to re-launch its offer as soon as possible.”
The bank’s IPO seeks to raise 390 million cedis which will be used to finance activities including the expansion of the branch and IT infrastructure projects.
It will also use some of the proceeds to pay off the Bank of Ghana’s shares in the bank.
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