The Agricultural Development Bank Ltd. will ask Ghana’s securities regulator for permission to reopen the country’s largest initial public offering after the company said it wasn’t satisfied with who bought the shares.
The ADB, which raised 450 million cedis ($116 million) in an IPO that closed in March, is seeking to sell shares in another round after the government missed a second deadline this month to approve the transaction. The government is the largest holder and sold an undisclosed portion of its 52 percent stake. The Bank of Ghana owns the rest of the lender.
“The anchor investors whom the transaction advisers sold shares to initially was not in line with terms of reference,” Solomon Atefoe, a spokesman for ADB, said Monday in an interview in Accra, the capital. “We’re now re-engaging to get our preferred anchor investors.”
The four largest participants in the initial sale bought about 72 percent of the shares that were offered, Atefoe said.
ADB is in talks with the Ghana Cocoa Board and the Social Security and National Insurance Trust to buy shares, Atefoe said. The trust is the nation’s largest pension fund. The bank wants to reopen the IPO next week and the process may last as long as two months, he said.
Investors in the lender’s initial offering will probably see their stakes reduced, Kenneth Mpare, general manager at Frontline Capital Advisors Ltd., said by phone from Accra.
“A closed issue should’ve been a closed issue,” Mpare said. “If they were not able to meet the target then there would’ve been reason to re-open it. With all intent this deal was closed.”
Michael Darko, executive director at IC Securities which acted as the transaction adviser, and the Securities Exchange Commission’s Director General Adu Anane Antwi didn’t answer calls seeking comment.
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