SEC receives revised IPO documents from adb
The Securities and Exchange Commission (SEC) has confirmed receipt of a revised prospectus from the Agricultural Development Bank (adb) which plans to float shares to enable it list on the Ghana Stock Exchange.
Government which is majority shareholder of the bank with over 50 percent shares last month ordered the bank to put the IPO on hold after agitations from workers of the bank over the move.
The workers claim the money the bank is hoping to raise on the stock exchange could have been realize if management and bard of the bank had run the bank effectively and efficiently.
They have accused the MD of the bank and the board of financial malfeasance and have called for their resignation.
Last month the bank of Ghana which owns over forty percent of ADB commenced investigations into the allegations.
According to the SEC however, it will give the bank the green light for the Initial Public Offering (IPO) after studying the offer documents of the bank.
Director General of the Securities and Exchange Commission, Dr Adu Anane Antwi told Citi Business News ‘’we are looking at the documents to see what has changed ; we have already approved the documents but once they have submitted a revised plan some information has changed and once we are satisfied with it, we will ask them to go ahead with the IPO.’’
ADB is hoping to raise about 420 million cedis from the IPO of which 220 million cedis will go to the Bank of Ghana for its 48 % stake in the bank which will be offloaded during the IPO.
The bank would issue almost 1.4 million shares consist of shares in Bank of Ghana and some new shares from the bank.
SEC boss is however hopeful management of the bank will resolve outstanding issues at the bank to enable it have a smooth IPO.