ADB To Re - Launch IPO Soon
The management of adb Bank has related that it will soon, possibly this week, institute measures to re-launch its halted Initial Public Offer (IPO).
This follows the Supreme Court advice to the Union of Commerce, Industry and Finance workers (UNICOF) never to file any case in the court regarding the Initial Public Offer (IPO) of the adb.
The Union of Commerce, Industry and Finance workers (UNICOF) seeking to place an injunction on the IPO following the bank’s failure to follow due process in preparing a prospectus to list on the Ghana Stock Exchange.
The court further awarded cost of GHc 10,000.00 against UNICOF, out of which the adb will keep GHc 5,000.00 and the Attorney General’s Department, retain GHc 5,000.00.
These decisions were taken against UNICOF by court when the union withdrew a case it filed against the Adb over the sale of the bank’s shares on the Ghana Stock Exchange (GSE).
According to UNICOF, adb failed to follow due process in preparing a prospectus to list on the Ghana Stock Exchange to sell more than 74 million existing shares and 75 million new shares.
But in a rather interesting turn of events, lawyer for UNICOF announced in court last week that it had withdrawn the suit.
UNICOF, which gave no reasons in court for the withdrawal, dragged adb to the Supreme Court earlier this month barely 24 hours after an Accra high court threw out their earlier case against the bank seeking to place an injunction on its Initial Public Offer.
Lawyer for UNICOF, Charles Bawaduah explained after the ruling that his client withdrew the case because "we believe in the best interest of UNICOF it will be tactical to withdraw the case. We are not trying to frustrate ADB and the process, but we want the bank to go through the right process.
"The court has ruled that we should not repeat this application in the court, but we have other suits in other courts so we will explore them," he said.
But adb’s Head of Legal and General Counsel, Maxwell Kofi Amoakohene has noted that, the bank will immediately resume the IPO.
‘It’s a big day for us, the process of making money for the bank which some wanted to halt have been cleared.
"We had said from the beginning that there was no any merit in the whole process they had sought to follow; the best thing for them to do is what they did today."
Maxwell Kofi Amoakohene also encouraged customers to buy the bank’s shares when the IPO is re-launched.
‘Immediately, we are going to inform SEC and all others so we start the process; it could even be tomorrow.
I can assure all Ghanaians that the way is clear and all those who want to invest in the bank should come so together we can help this bank make money," he added.
Meanwhile, the Supreme Court has ruled that UNICOF cannot ever file such a case before the court following their withdrawal of the case.
The suit filed by UNICOF sought an order of interlocutory injunction to restrain the adb, their agents, assigns, proxies and or contractors from proceeding with continuing, or resuming the sale of the shares of the bank pending final determination of the suit filed at the court.
The motion for an order of interlocutory injunction had adb as the 1st defendant and the Attorney General and Minister of Justice as the 2nd defendant.
According to UNICOF, the adb failed to follow due process in preparing a prospectus to list on the GSE and sell more than 74 million existing shares with plans to issue more than 75 million additional shares.
UNICOF also accused the adb’s management of perpetuating an illegality by signing two memoranda of understanding with two foreign companies for the allotment of a number of shares to those companies.
The Union said the two agreements signed by the adb and the Norwegian Fund for Developing Countries to offer them 15 per cent of the shares and Atlas Mara having acquired 25 per cent did not receive Parliamentary approval as an international transaction.
UNICOF also wanted the Supreme Court to declare as unconstitutional moves by adb to list on the bourse and sell 40 per cent of the company to foreign companies.
It also wanted adb to be restrained from going on with the IPO till the court case was concluded.
ADB was forced to put on hold the IPO following the suits.