The Agricultural Development Bank (ADB) has ascribed the significant performance of the bank’s share price to investor confidence in the banking stock.
The bank was listed on Monday December 12, 2016 with an initial share orice of GHC 2.65p.
However as at close of trading on Monday December 19, 2016, ADB gained by 13.50 percent and was trading at GHC 3.33p.
Also, a total of 10,000 ADB shares were traded on the bourse on Monday.
“We think that it is the confidence that investors have in the shares of the bank; on the exchange the price is determined by the confidence that investors have and that is what is being played out here,” Managing Director of ADB, Daniel Asiedu said.
ADB is the 40 company to list on the Ghana Stock exchange. It is also the eighth bank to list on the GSE.
The Managing Director of the Ghana Stock Exchange Kofi Yamoah, has urged ADB to adhere to the rules binding companies that have listed on the stock market.
Mr Yamoah was speaking at a ceremony to officially signify ADB’s listing on the stock market.
He mentioned that every company after listing on the stock market are expected to do three basic things.
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These are “to use proceeds from IPO for exactly what it was raised for, to keep investors updated on the happenings in the company and to work on paying dividends to its shareholders.”
Asiedu responded to this call saying that “before we came to the exchange, we agreed to the terms and conditions of the exchange and clearly because we are almost ending the year, it is our hope that sometime next year, we will be presenting our investors with updates during the facts behind the figures session.”