After series of cancellations, the Initial Public Offer (IPO) of agricultural development bank (adb) has finally commenced.
This follows approval from the Securities and Exchange Commission (SEC).
The launch of the IPO, according impeccable sources took off this morning and will run till the end of February, 2016.
The bank is hoping to raise a total of 398,454,178 cedis through the IPO. A total of 74,888,369 shares belonging to the Bank of Ghana are to be sold while another set of 75,471,698 new shares from the bank proper will also be sold at a share price of 2 cedis 65 pesweas.
According to the bank of this amount it will dish out 191, 741 million cedis to the Bank of Ghana for its shares. 60 million of the cash raised will be used by the bank for expansion and refurbishment of its branch network. About 49 million cedis for rebranding and staff rationalization.
The rest of the cash raised will be used for business applications-34 million, IT upgrades and other IT solutions-26 million cedis. The rest will go into the bank’s new head office-8 million cedis, ATM expansion-16 million cedis and offer expenses – 13,480 milion cedis.
The shares can be bought at any ADB branch, Standard Chartered Bank (“SCB”) branch, IC Securities (Ghana) Limited or any Licensed Dealing Member (“LDM”) of the Ghana Stock Exchange (“GSE”). Each application under the IPO must be for a minimum of 100 ADB Shares amounting to GHS 265.00 and in multiples of 10 ADB Shares thereafter.