INDIGENOUS bank, Agricultural Development Bank (ADB), will on August 28, 2019, seek shareholders’ approval to raise GH₵127 million via private placement to increase its stated capital to GH₵400 million minimum capital requirement by the Bank of Ghana.
Together with four other indigenous banks, ADB received some support from the Ghana Amalgamated Trust Plc in 2018 in order to meet its capital requirement.
According to a circular from the Ghana Stock Exchange, among many other special businesses tabled for the Annual General Meeting, ADB is also seeking to waive the pre-emptive rights of shareholders in relation to ordinary shareholders to be issued to the Ghana Amalgamated Trust Plc in relation to the private placement.
It will also authorize directors of the company subject to applicable rules to determine the terms, timing and pricing of the private placement.
The other business includes ratifying the new appointment of directors onto the board of the board.
The rest are to receive and adopt the Annual Reports Audited Financial Statements for the year ended December 31, 2018 together with the reports of the directors and auditors, as well as fix the remuneration of the directors.
Shared price performance
The recent performance of ADB could influence its share price on the GSE after some dismal performance at the beginning of the year.
It is presently hovering around GH₵5.06 per share on the Accra Bourse representing about 14.96 percent growth since January 1, 219.
ADB saw its profit going up by 22.1 percent to GH₵25.1 million at the end of the first half of 2019. It registered a profit of GH₵20.5 million during the same period last year.
The major contributor to the bottom line was as a result of reduction in impairment. Loan loss was GH₵2. 5 million at the end of June 2019 as against GH₵13.1 million last year
( By Augustine AMOAH)