Stock market analysts have cited inappropriate timing and pricing as some reasons leading to the extension of the offer period for Access bank’s Initial Public Offer.
“The extension was given to investors who were not able to purchase within the stipulated period. As expected for some us we were not considering the deal to be flying; also, we think the timing was not enough and the pricing too some of us think was on the high side,” Stock market analyst, Kofi Kyei stated.
Access bank, on Monday [November 14, 2016] announced an extension of its IPO from November 11 to November 25, 2016.
The bank on October 19th, launched its IPO to raise 104 million cedis to meet its expansion drive.
No reasons were given by the bank for the additional time for the offer to close.
But an Associate, Equity Trading at UMB Capital, Kofi Kyei explains that the relative high prices of shares in addition to the general underperformance of some banking stocks made it unattractive for investors.
“Investors thought investing in banks that are listed though they may not be performing well, will be prudent than Access bank which is not listed. Comparing these factors, some of the investors will consider going to the market than buying shares in Access bank.”
Access bank becomes the first Nigerian Bank to list on the Ghana Stock Exchange if its IPO is successful.
The move also comes after calls by the Securities and Exchange Commission (SEC) for multinationals to list on the domestic bourse and improve Ghana’s capital market.
Some stock market analysts earlier predicted that more companies are likely to list on the Ghana Stock Exchange to meet the recapitalization requirement by the Bank of Ghana.
By: Pius Amihere Eduku/citibusinessnews.com/Ghana