adb finally listed on Ghana Stock Exchange

The Agricultural Development Bank (ADB) is today expected to begin trading on the Ghana Stock Exchange after having successfully raise about GHc325.7 million in its Initial Public Offer (IPO).

With a total applicant of 405, adb sold out 122,937,718 ordinary shares with majority going to the institutional shareholders.

The Retail applicant’s total shares bought represents 98.77percent of the shares sold out by adb while the five institutional applicants or shareholders represents 1.23%.

According to the bank, though the Retail applicants in percentage terms seem to be in the majority, they had a total of a little above 5 million shares as the bank raise a little above GHc13.5 million from them.

This comes after the bank in December 5, 2016 completed the IPO of existing ordinary shares at an offer price value of GHc2.65 per share.

The five institutional investors also paid a little above GHc312.1 million, receiving a total of a little above 117.8 million shares.

Information available to the thebftonline.com indicates that the board of adb in a meeting on October 25, 2016 on the IPO agreed on a new structure which has now seen the government cede 20 percent of the company’s shares to an American-based financial firm, Belstar Capital Limited, while the government retains majority stake of some 32.3 percent of the bank's shares.

The board said the new structure is in line with conditions for government’s approval of the listing on the Ghana Stock Exchange.

As a result, other companies such as SSNIT have been allocated 9.5% of the shares while Starmount Development Company Limited gets 11% and SIC Financial Services 10%. Others are EDC Capital of ECOBANK 6%; and Stanlib, a subsidiary of Stanbic Bank Group, also gets 4%.

It is imperative to indicate that, the Bank of Ghana through this IPO has ceded off its shares in the bank.

Though the bank was expecting to raise GHc 383,713,995.10 from the offer, the proceeds raised from the Offer was the sum of GHc325, 784,952.70 relative to the expected proceeds representing some 85 percent subscription level.

In an earlier statement copied to the thbftonline.com, the bank said all successful applicants with Central Securities Depository (“CSD”) accounts will have their CDS accounts credited with their allotment by 5:00pm 09 December, 2016.

Meanwhile, successful applicants without a CSD account will be mailed a Letter of Allotment from today December 12, 2016 which they can present to any Licensed Dealing Member of the Ghana Stock Exchange to dematerialize onto the CSD.

In addition, adb is also expected to refund an amount of GHc 205,878.50 to two retail applicants as their offers were rejected by the bank. It is not clear what led to the rejection but the refund was to be done not later than Monday December 12, 2016

IC Securities (Ghana) Limited acted as Sole Financial Advisor and Lead Sponsoring Broker in respect of the ADB IPO.

NTHC Securities acted as co-sponsoring broker in respect of the ADB IPO.