The Agricultural Development Bank (ADB) has made a private placement of 39,076,924 ordinary shares of no-par value to the Ghana Amalgamated Trust (GAT) to raise GHc127 million in order to recapitalize.
The private placement which started on Friday, January 10, this year, is expected to end Tuesday, January 14, 2020, with listing of shares planned for Tuesday, January 21.
The flotation of the shares, which comes at a placement price of GHc3.25 per share, is part of ADB’s recapitalization exercise and is billed to support its holistic growth.
Unlike Initial Public Offerings (IPOs), which are open to the general public, the private placements are targeted at specific investors who usually invest huge sums of money.
Thus, GAT will have representation on the board of directors of ADB who will provide the strategic direction of the bank.
According to ADB, this is pursuant to Regulation 40 of the Ghana Stock Exchange Listing Rules, 2006.
The equity injection was approved by the shareholders of ADB at its annual general meeting on August 28, last year, and the Securities and Exchange Commission (SEC) on January 2, this year.
Serengeti Capital is the lead manager and sponsoring broker for the offer.
A communication by the bank said, “Trading will not be suspended during the offer period; hence shareholders on the register of members of Agricultural Development Bank may continue to trade their shares on the exchange as usual. The new shares will be admitted to the main market of the Ghana Stock market and will rank pari passu to existing ordinary shares in ADB in all respects. Following the admittance of the new shares, total number of ordinary shares in issue will be 300,798,407.”