Agricultural Development Bank lists on GSE

adbThe Agricultural Development Bank (adb) has officially been listed on the Ghana Stock Exchange (GSE), becoming the 40th listed company and the fourth local bank on the market.
The bank, which had already begun trading on the bourse on December 13, went through the formal ceremony after having successfully raised about GHȼ325.7 million in its Initial Public Offer (IPO).
It sold 122,937,718 ordinary shares with retail applicants acquiring about 98.77per cent of the shares while the five institutional shareholders took about 1.23 per cent.
“This is a very important occasion in the history of our bank and the government of Ghana as it highlights the government’s effort to support the deepening and growth of the capital market,” Mr Daniel Asiedu, Managing Director of adb, said at the listing on the floor of the Exchange.
Mr. Asiedu said a healthy and well capitalised stock market was key to the growth of the economy as it helps in the mobilisation of the needed capital to finance projects in the country.
Besides, a well-capitalised market helps boost investor confidence in the financial system and in the consolidation and promotion of growth of vital sectors of the economy and leads to the creation of the required jobs.
He said adb was confident that its participation on the market would help deepen the market and provide investors asset options to deploy their investible funds.
On the outlook for the bank in 2017, Mr. Asiedu said he was very optimistic that the bank would perform well because of the strategies being put in place by management.
Mr. Kofi Yamoah, the Managing Director of the Ghana Stock Exchange, said the incoming government must be keen in creating the environment for companies such as those in the telecom, mining and the banking sectors to list.
He called on the sector regulators to encourage companies to list.
He also urged government to reconsider the imposition of a capital gains tax as it would make the GSE the only market in the region to be applying the tax on listed securities, adding that the move would deal a competitive blow to the GSE.
He cited Nigeria and Cote d’Ivoire where capital gains were not taxed and stressed the need for an immediate review by the new government.
Nana Soglo Alloh IV, Board Chairman, Agricultural Development Bank said the government views the financial services sector and particularly the Ghanaian stock market as an enabler of growth.
“The Ghanaian economy has been touted in the November 2016 edition of the Economist Intelligence Unit as a favourable investment destination. International investors are therefore making the most of this investment opportunity while more and more Ghanaian investors are also resorting to investing in the capital markets for a secure future,” he said.
The capital market he said had become a veritable source for mobilising funds for growth boosting projects with retail investors also turning to the stock market to invest.
Nana Soglo Alloh IV, Board Chairman ADB, encouraged investors to buy ADB shares in saving for the future.
Mr. Raymond Amanfo, Head of Banking Supervision Bank of Ghana, said the Central Bank was working with the GSE to see how to fast-track the listing of other banks.
He described the listing of the bank as a very good step and urged the management to be focused and transparent in their dealings.
The bank’s shares are currently trading at GHȼ3.35 cedis.

By David Adadevoh

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