The IPO kick started today August 31st, 2015 after it was put on hold following two suits filed by the Union of Commerce, Industry and Finance (UNICOF) in an Accra High court and the Supreme.UNICOF on Wednesday 19th August, 2015 withdrew the case it filed against the bank at the Supreme court over its Initial Public Offer (IPO).
The suit which was cited by Citi Business News sought an order of interlocutory injunction to restrain the defendant ADB, their agents, assigns, privies and or contractors from proceeding with continuing, or resuming the sale of the shares of the bank pending final determination of the suit filed at the court.
The motion for an order of interlocutory injunction had ADB as the 1st defendant and the Attorney General and minister of Justice as the 2nd defendant.
According to UNICOF, the 1st Defendant which is ADB, failed to follow due process in preparing a prospectus to list on the Ghana Stock Exchange and sell more than 74 million existing shares with plans to issue more than 75 million additional shares. UNICOF also accused ADB’s management of perpetuating an illegality by signing two memoranda of understanding with two foreign companies for the allotment of a number of shares to those companies.
According to ADB in a release it will recommence the IPO from today August 31, 2015 at 9am and will end at 5pm on October 9, 2015.
According to the bank the Securities and Exchange Commission (“SEC”) has approved the re-opening of the ADB IPO.
Per the new reopening the timetable will be as follows:
|Recommencement of Offer Period||31 August 2015||9:00am|
|End of Offer Period||9 October 2015||5:00pm|
|Application Forms review for allotment commences||12 October 2015||9:00am|
|End of allotment and submission of results to the SEC||23 October 2015||5:00pm|
|Crediting of ADB Shares to successful applicants||30 October 2015||5:00pm|
|Commence dispatching letters to successful applicants||02 November 2015||9:00am|
|Refunds to unsuccessful applicants||02 November 2015||10:00am|
|Listing of all ADB Shares. First day of trading on GSE||04 November 2015||10:00am|
Meanwhile shares of the bank can be bought at any ADB branch, any Standard Chartered Bank (“SCB”) branch, IC Securities (Ghana) Limited or any Licensed Dealing Member (“LDM”) of the Ghana Stock Exchange (“GSE”) at GHS 2.65 per share.
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.
Meanwhile according to the bank applicants ‘should however note that there are two Writs of Summons currently pending in the Supreme Court titled’:
- a) Dr. Mark Asibey-Yeboah Vrs. Agricultural Development Bank Limited & Attorney General & Minister of Justice; and
- b) Union of Industry, Commerce & Finance Vrs. Agricultural Development Bank limited & Attorney General & Minister of Justice.
In the suits, Plaintiffs allege that, because the shares on offer belong to the Government of Ghana and are held in trust for it by the Ministry of Finance, and certain specific aspects of the IPO entail agreements with foreign or international entities, ADB requires prior Parliamentary approval pursuant to Article 181(5) of the 1992 Constitution, in order to engage in the IPO.