ADB to re-launch IPO as it fails to raise minimum GhȻ100million subscription
The ADB at the close of its Initial Public Offer (IPO) was unable to raise the minimum subscription of GhȻ 100million to enable it proceed to list on the Ghana Stock Exchange (GSE) .
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This is because the bank decided to reject offers made at GhȻ 2.00 per share instead of GhȻ2.65 per share.
The offers made at GhȻ2.00 per share amounted to GhȻ435,085,151.00.
It was however able to receive a total subscription of GhȻ437,934,810 at the close of the IPO but with the decision to reject offers made at GhȻ2.00, it was unable to satisfy the minimum subscription of GhȻ100million.
A statement signed and issued in Accra by Dr Adu Anane Antwi, Director General of the Securities and Exchange Commission (SEC) said the bank has informed the SEC of its intention to re-launch the offer.
Therefore as required, the bank would have to submit a new offer document to the SEC for approval.
Consequently, the SEC has directed IC Securities, the Transaction Adviser to ensure that all monies received in respect of the offer are returned to applicants (investors) as provided for under paragraph 1.7 of the ADB prospectus and in accordance with section 284 of the Companies Act, 1963 (Act 179).
The SEC’s statement explained that it has received a decision from the ADB rejecting applications from investors who applied to purchase shares at GhȻ2.00 instead of the GhȻ2.65 per share under its IPO.
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However, with the decision of the bank to reject offers made at GhȻ 2.00 per share which amounted to GhȻ435,085,151.000, the bank was unable to satisfy the mimimum subscription of GhȻ100million set in the prospectus to enable it proceed to list on the Ghana Stock Exchange.