Monday, December 19, 2016 marked another milestone in the history of the Ghana Stock Exchange. After nearly four years of debate and hard work the official ceremony to mark the listing of Agricultural Development Bank (ADB) became a reality on the Ghana Stock Exchange making ADB the 40th equity security on the market.
ADB started trading on the Exchange on December 12, 2016 following its successful public offer which started on November 24, 2016 and ended on December 05, 2016.
In his welcome address, Mr. K. S. Yamoah, Managing Director of the Ghana Stock Exchange noted that ADB is one of the biggest public offers in recent years in terms of funds raised and would have wished for tens of thousands of the Ghanaian investing public to have been part of the offer. He added that when given the need support, the capital market can create the needed enabling environment to enable corporate entities to leverage on to raise capital for expansion and growth.
Mr. K. S. Yamoah, Managing Director of Ghana Stock Exchange
He appealed to the Government to permit companies in which it still has holdings such as Vodafone Ghana to offer shares to the public and list on the Exchange and impressed upon the in-coming Government and the Ghana Revenue Authority to reconsider the introduction of capital gains tax on listed securities which is a major policy disincentive that will undermine the competitiveness of Ghana’s capital market even in the West African sub region.
He further asked regulators of various sectors in which entities depend on for licences to operate such as banking, insurance, telecom, oil & gas and mining should consider making the issuance and renewal of licences dependent on such entities going public and listing.
While congratulating ADB for the feat, he urged them to strictly apply the proceeds of the offer for the purposes intended as per the offer prospectus and also to ensure that the general investing public are informed of all price –sensitive information to maintain investor confidence in the bank.
The Board Chairman of ADB, Nana Soglo Alloh VI in his remarks noted that the Government views the financial services sector and particularly the Ghanaian stock market as an enabler for growth and that the capital market has become a veritable source for fund mobilization for growth boosting projects. He added that both local and international investors are taking advantage of the favourable investing environment in the country to invest on the capital market for a secured future. He welcomed on board all investors in ADB and expressed appreciation for their vote of confidence in ADB.
Chairman of the Board of ADB, Nana Soglo Alloh, VI.
On his part the Managing Director of Agricultural Development Bank (ADB) Mr. Daniel Aseidu noted that the successful listing of ADB on the GSE was a direct result of the hard work on the part of the Board, Management and staff of the bank as well as the Government of Ghana , partners and key stakeholders.
Mr. Daniel Aseidu, Managing Director of ADB
He said “As the 40th company and the fourth local bank to be listed on the Ghanaian bourse, we are confident that our participation on the stock market would help deepen the market and provide investors asset options to deploy their investible funds”.
Mr. Aseidu hoped that the ADB shares would eventually become the golden choice for investors on the stock market because of its enormous potential and noted that as a sign of good things to come, the value of ADB shares appreciated from its initial offer price to GH¢2.93 on first trading day on December 13, 2016 representing an impressive 10.57% rise in price.
He concluded by expressing the bank’s gratitude to the Government, the Securities & Exchange Commission, the Ghana Stock Exchange, the Central Securities Depository, IC Securities Ltd who were the lead managers, transaction advisors, brokerage firms and all stakeholders who made it possible for the successful listing of ADB shares on the GSE.
The public share offer of ADB consisted of a sale of 69,326,036 existing ordinary shares of no par value at GH¢2.65 per share being the offer price, an offer for subscription of 75,471,698 new ordinary shares of no par value at GH¢2.65 per share issued and fully paid and a listing of 86,125,488 existing ordinary shares. The offer period was November 24, 2016 to December 05, 2016.
ADB raised an amount of GH¢325,784,952.70 relative to the expected proceed of GH¢383,713,995.10 thereby representing 84.90% subscription level. The ADB IPO is one of the largest IPOs on the Ghana Stock Exchange in recent times.
IC Securities (Ghana) Ltd acted as the sole financial advisor and lead sponsoring broker with NTHC Securities as the co-sponsoring broker.