The Agricultural Development Bank (adb) will begin its private placement exercise on Friday, 10 January 2020, to raise GHS127 million.

The private placement will end on Tuesday, 14 January 2020, with an allotment exercise beginning the following day, 15 January 2020.

The allotment exercise will end on 17 January 2020 and the results subsequently submitted to the Securities and Exchange Commission (SEC).

Class Business learnt that the private placement will see an issuance of 39,076,924 ordinary shares of no-par value to the Ghana Amalgamated Trust (GAT) at a placement price of GHS 3.25 per share.

According to the Ghana Stock Exchange, trading in adb shares will not be suspended during the offer period.

The new shares will be admitted to the main market of the Ghana Stock Exchange and will rank ‘pari passu’ to existing ordinary shares in adb in all respects.

Following the admittance of the new shares, the total number of ordinary shares in issue will be 300,798,407.

Serengeti Capital Markets is the lead manager and sponsoring broker for the offer.

The private placement was approved by the shareholders of Agricultural Development Bank at its annual general meeting on 28 August 2019 and by the SEC on 2 January 2020.