The Securities and Exchange Commission, SEC, has directed the transaction advisor of the Agricultural Development Bank's IPO, to return all monies received from applicants who purchased the offer at 2 cedis per share.
It follows a petition filed with the SEC by the bank rejecting all applications from investors who applied to purchase shares at 2 cedis instead of the 2 cedis 65 pesewas per share under the IPO.
A statement issued by the Commission and copied to Citi Business News indicated that ADB received a total subscription of 437,934,810 million cedis at the close of the offer.
However with the decision of the bank to reject the offers made at 2 cedis which amounted to 435, 088,151 million cedis, the bank was unable to satisfy the minimum subscription of 100 million cedis set in the prospectus to enable it proceed to list on the Ghana Stock Exchange.
The statement further noted that consequently, the SEC has directed IC Securities which is the transaction advisor to ensure all monies received in respect of the offer are returned to applicants provided for under paragraph 1.7 of the ADB prospectus and in accordance with section 284 of the Companies Act,1963 (Act 179).
ADB seeks re-launch of IPO
Meanwhile ADB has informed the industry regulator of its intention to re-launch the offer.
It will therefore be required to submit a new offer document to the SEC for approval.
The bank's inability to list on the domestic bourse began earlier this month after the Board petitioned the SEC over the IPO results.
It subsequently withdrew the petition which led to the SEC suspending its hold on the IPO.
The bank is seeking to raise 390 million cedis which it intends to channel into paying the BoG's shares as well as the bank's branch and IT infrastructure expansion projects.
The ADB's IPO has suffered a number of setbacks since it was initially launched about two years ago.
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By: Pius Amihere Eduku/citibusinessnews.com/Ghana
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