SEC offers to extend the duration for ADB's IPO if…

The Securities and Exchange Commission (SEC) has revealed the Agricultural Development Bank (ADB) can apply for an extension of the duration for its Initial Public Offering (IPO) once the court gives the greenlight for the process to continue.

ADB has announced a temporary halt in its IPO process following the 10-day interim injunction secured by the Union of Industry, Commerce and Finance Workers to prevent management from proceeding any further with the share-sale.

According to the bank, all the offer applications and payments received prior to the injunction will however remain valid until otherwise determined.

Meanwhile, with the 10 day court injunction already in effect, the offer duration would invariably be shortened. The offer opened on July 03 and scheduled to close on August 21 – that’s about 7 weeks or some 50 days and so with the interim injunction, this will fall short by some 10 days at least for now.

But in an exclusive interview with Joy Business Editor, Emmanuel Agyei, the Director General of the SEC, Adu Anane Antwi explained the deadline can be extended.

“If the court realises that the offer should go ahead, they will just ask them to continue and if the managers require some extension they could write to the SEC to ask for extension of time - which is normal.

“Even if there was no court injunction and you think that your process, still needed some time to be able to get more investors to be brought on board, you can still come to the SEC to ask for an extension period,” he noted.

The SEC is the regulatory institution for the capital market that approved ADB’s Initial Public Offering after the due diligence.