Scandal rocks ADB over IPO

Some staff of the Agricultural Development Bank (ADB) are not happy in what they say is the unprofessional conduct of the Board and Management of the State-owned banking facility.

They want the Finance Ministry and the Security and Exchange Commission (SEC) to, as a matter of urgency, probe the Initial Public Offer (IPO) of the bank which was opened to the public late last year.

The staff who want to remain anonymous because they have not been authorized to speak on the matter said they have detected some fishy deals in the bank’s IPO being led by the superiors.

They claim the Board and Management of the Agricultural Development Bank (adb) have clandestinely agreed to give 67.3% of shares to the bank’s institutional investors at a reduced price of GHC2.00 instead of the GHC2.65 advertised in the national dailies and electronic media.

The move follows the bank’s failure to sell all the 70% shares it earmarked for the IPO to individuals who were interest in owing a stake in the State-owned financial institution.

The bank, Kasapafmonline.com is reliably informed, was able to sell only 2.7% out of the 70% shares it allocated for the IPO.

This development, according to the staff, has further aggravated the already existing problems to cause the delay of the bank in listing on the Ghana Stock Exchange.

Investors who bought the 2.7% shares at the GHC2.65 offer price, we are told, are also angry with the bank for not listing on the Ghana Stock Exchange.

Many of these investors, according to bank officials, have been informed about some alleged underhand dealings by the new Management headed by Daniel Asiedu and Board of the Bank which is dragging the bank’s efforts at listing on the Stock Exchange.

What is more worrying they say, is the numerous publications by the bank that its shares were oversubscribed knowing very well that that was contrary to the official figures on paper.

After all issues regarding protests and law suits were resolved, adb re-opened its IPO on Dec. 23, 2015 which was to be closed on the Feb, 26.

Two weeks before the closure of the offer, a further extension of four weeks was announced to now close on March 24, 2016.

After the closure and subsequent announcement by the bank over the subscription of the shares, some of the investors are now demanding to know what is preventing the bank from listing on the Stock Exchange.