Information gathered from a number of agents, including IC Securities, indicates that the Initial Public Offer (IPO) of Agricultural Development Bank (adb) is likely to be oversubscribed.

Despite the initial staff agitations that threatened the success of the IPO, agents selling the shares say the IPO has been highly patronised by both locals and foreigners.

Corporate subscriptions are high, but retail buyers have increased since last week, and this is expected to intensify this week as the IPO nears its end.

The bank is in dire need of capital to meet its regulatory capital, and the proceeds from the IPO will help ADB get back on a solid footing.

ADB is hoping to raise a total of GH?398,454,178 through the IPO.

A total of 74,888,369 shares belonging to the Bank of Ghana are to be sold while another set of 75,471,698 new shares from the bank proper will also be sold at a share price of GH?2.65.

According to the bank, of this amount, it will dish out GH?191,741,000 to the Bank of Ghana for its shares.

And GH?60 million of the cash raised will be used by the bank for expansion and refurbishment of its branch network.

About GH?49 million will be used for rebranding and staff rationalisation.

The rest of the cash raised will be used for business applications, GH?34 million, IT upgrades and other IT solutions - GH?26 million.

The rest will go into the bank’s new head office, GH?8 million, ATM expansion - GH?16 million and offer expenses - GH?13,480 million.

The shares can be bought at any ADB branch, Standard Chartered Bank (“SCB”) branch, IC Securities (Ghana) Limited or any Licensed Dealing Member (“LDM”) of the Ghana Stock Exchange (“GSE”).

Each application under the IPO must be for a minimum of 100 ADB Shares amounting to GH?265 and in multiples of 10 ADB Shares thereafter.

Analysts say due diligence by institutional investors may result in a price reduction during allocation.