Ghana’s ADB May Restart Enlarged $150 Million IPO Next Week

Agricultural Development Bank Ltd. of Ghana may reopen an initial public offering next week, increasing its funding target by half after rejecting bids in a share sale that closed in March.

The biggest agricultural lender in the West African country will seek to raise 600 million cedis (about $150 million) should the government, which holds 52 percent, approve the transaction, Chairman Nana Soglo Alloh said by phone on Wednesday. The government will maintain a controlling stake while the Bank of Ghana, which owns 48 percent, is exiting its holding, Alloh said.

“We hope to raise more by selling more shares,” Alloh said. The prospectus will go to the cabinet on Thursday for approval, the chairman said.

After the initial offer earlier this year, the bank returned 435.1 million cedis of bids to investors. The bank is seeking to raise capital to boost lending.

The shares will be sold at 2.65 cedis each, Alloh said. Staff have been allotted five percent of the stock on offer, he said.

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