The Agricultural Development Bank (ADB) has told Citi Business News it will immediately initiate moves to re-launch its Initial Public Offer (IPO).
The move follows the ditching of a lawsuit filed against it by the Union of Commerce, Industry and Finance workers (UNICOF) seeking to place an injunction on the IPO following the bank’s failure to follow due process in preparing a prospectus to list on the Ghana Stock Exchange.
UNICOF, which gave no reasons in court for the withdrawal, dragged ADB to the Supreme Court earlier this month barely 24 hours after an Accra high court threw out their earlier case against the bank seeking to place an injunction on its Initial Public Offer.
According to UNICOF, ADB failed to follow due process in preparing a prospectus to list on the Ghana Stock Exchange to sell more than 74 million existing shares and 75 million new shares.
But in a rather interesting turn of events, lawyer for UNICOF today announced in court it had withdrawn the suit.
Lawyer for UNICOF, Charles Bawaduah explained to Citi Business News after the ruling that his client withdrew the case because "we believe in the best interest of UNICOF it will be tactical to withdraw the case. We are not trying to frustrate ADB and the process, but we want the bank to go through the right process.
"The court has ruled that we should not repeat this application in the court, but we have other suits in other courts so we will explore them," he said.
But ADB’s Head of Legal and General Counsel, Maxwell Kofi Amoakohene has told Citi Business News that the bank will immediately resume the IPO.
‘It’s a big day for us, the process of making money for the bank which some wanted to halt have been cleared.
"We had said from the beginning that there was no any merit in the whole process they had sought to follow; the best thing for them to do is what they did today."
Maxwell Kofi Amoakohene also encouraged customers to buy the bank’s shares when the IPO is re-launched.
‘Immediately, we are going to inform SEC and all others so we start the process; it could even be tomorrow.
I can assure all Ghanaians that the way is clear and all those who want to invest in the bank should come so together we can help this bank make money," he added.
Meanwhile, the Supreme court has ruled that UNICOF cannot ever file such a case before the court following their withdrawal of the case.
The court also awarded the two defendants- ADB and the Attorney General- five thousand each in damages.
ADB was forced to put on hold the IPO following the suits.