SEC rejects investors’ application on adb shares

The Securities and Exchange Commission (SEC) has rejected applications from investors who purchased shares at GH¢2.00 instead of the GH¢2.65 per share under the Initial Public Offer (IPO) of the Agricultural Development Bank (adb).

A statement signed by Dr Adu A. Antwi, the Director General of the SEC, said the decision was arrived at based on information from the adb that it had rejected the applications.

It said adb received a total subscription of GH¢ 437,934,810.00 at the close of the offer.

However, with the decision of the bank to reject offers made at GH¢ 435,085,151.00, the bank was unable to satisfy the minimum subscription of GH¢ 100 million set in the prospectus to enable it to proceed to list on the Ghana Stock Exchange.

Consequently, the SEC had directed IC Securities (the transaction advisor) to ensure that all monies received in respect of the offer were returned to applicants 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 statement said.

The SEC said adb had informed the Commission of its intention to re-launch the offer and would be required to submit a new offer document to the SEC for approval.

Source: GNA