The Agricultural Development Bank (ADB) has attributed the extension of its Initial Public Offer (IPO) to its quest to allow more retail patronage of its shares.
The sale of the bank’s IPO was initially scheduled to end on February 26. But a statement released by the bank indicated an extension to March 24, 2016.
The Head of Research at UMB stock brokers, Nana Kofi Agyeman Gyamfi had earlier told Citi Business News of a low patronage with some few weeks to the end of the initial closing date.
ADB launched its IPO on December 23 after several unsuccessful attempts due to some legal constraints. The bank is expecting to raise about 390 million cedis from the IPO.
Speaking to Citi Business News, the Head of Marketing and Communications at ADB, Solomon Adu Atefoe maintained that the bank is hopeful of further increase in patronage before the closing date is due.
“Based on the immense response by the customers at the later stage of the IPO, we decided to extend it to give more people the chance because Ghanaians were behaving like the last minute purchasers which we usually are. So there was the need for ADB to grant more people the opportunity to own part of the progressive bank.” Solomon Adu Atefoe stated.
Meanwhile Solomon Adu Atefoe says the bank is optimistic of higher patronage during the extension period,
“Expectations are great. We believe more people are going to buy into it. As I keep saying, ADB staff has bought into it and more retail customers are also buying into it so expectations are very very good”. He added.
By: Pius Amihere Eduku
