There comes a time when national interests should made paramount and allowed to drive our actions and concerns as a nation. AFAG has observed the Agricultural Development Bank (ADB) saga with alarm as some workers battle management to the detriment of the overall corporate interests and derail a rather positive step such as an Initial Public Offer (IPO) on the Ghana stock market.
There is no corporate body without challenges. So we urge workers and management to seriously consider their common interests and pursue it. This is a sound advice AFAG wishes to communicate to all actors. Dialogue is the best way out of this.
AFAG has established that; the bank (management and workers) have done lots of good to be proud of;
1. Total assets have grown from GHC735 million in 2009 to GHC2, 157million in 2014
2. Deposits have increased from GHC425 million in 2009 to GHC1, 462 million in 2014
3. Operating income has increased from has grown from GHC77 million in 2009 to GHc328 million in 2014 with net profit currently at GHC 47.9 million.
4. Non-performing loan ratio has dropped to an average 14.1% taking the ratios for 2009 to 2014. (The ratio was at an average of 21.1% from 2004 to 2009).
WHY THE IPO IS POSITIVE
1. Access to capital to fund growth
From our cursory calculations, the IPO is expected to GHC200, 000,000 to GHC300, 000,000 in fresh equity for the bank. This would in no doubt help the bank to expand, and undertake investment options, which would increase it profit and hence higher returns for shareholders including SSNIT.
2. Maximum value of the Bank
An IPO would offer a large number of institutional and retail investors to become shareholders of the company. A projected GHC200 to GHC300million fresh capital would go a long way to move ADB forward.
3. Listing on the Ghana stock exchange means that the business will receive wide media.. Such public profile supports liquidity of the shares and contributes to the bank’s deposits mobilization drive.
AFAG has no doubt that, the protagonists have the capacity to resolve this matter. As such, we urge the workers and management to dialogue out and move the bank forward. It is our hope that, management and workers would unite and move forward to protect a national asset.