| How FirstInland IPO
hit N100bn returns
By SEUN ADESIDA (seun@sunnewsonline)
Saturday, March
15, 2008
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Okey Nwosu
Photo: Sun News Publishing |
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Like the offers of many other banks that came into the stock
market before it for capital sourcing, the just concluded
Initial Public Offer of FirstInland Bank appears to have been
over- subscribed. Facts from the Issuing Houses revealed this
to us recently.
Indications to this effect emerged when another source close
to the bank revealed that the mood in the bank was ecstatic
as a result of the bumper harvest of investment, a sign of
the wide and better acceptance of the bank by the public.
The source noted that over N70billion was received through
the bank and expressed the hope that collation from other
sources would surpass N100billion.
FirstInland Bank in January floated a N100billiobn Offer which
it said the returns would be applied in financing the expansion
of the banks branch network, upgrade its Information Technology,
recapitalize its subsidiaries and improve its working capital.
The branch expansion project received a boost, when the bank,
recently commissioned over 20 new outlets. The MD/CEO of the
bank, Mr. Okey Nwosu during the commissioning of the regional
head office of the bank in Lekki, Lagos State, said that the
bank is targeting additional 200 branches to the existing
ones in the next two years.
Oversubscribed refund
On the issue of refund of oversubscribed fund, the bank at
the period of the offer told investors that in the event of
over subscription, the shares shall be allotted to shareholders
in an amount not exceeding the bank’s un-issued capital,
subject to the approval of the Bank’s Board of Directors
and the regulatory absorption limit of 25 per cent of the
over subscription.
Officials of the bank had said that the supplementary proceeds
will be utilized for the same purpose and in the same proportion
as stated in the prospectus to the offer.
NSE’s clean bill
Meanwhile, the Nigerian Stock Exchange (NSE) has lifted the
technical suspension it placed on First Inland Bank’s
Stock prior to the offer. The technical suspension signifies
resumption of trading on the stocks of the bank after the
expiration of the period granted to it to raise fresh capital
from the capital market. The bank won an award, last year,
as the fourth most traded stock on the floor of the NSE.
Investors who bought into the bank’s recent offer are
said to be expectantly waiting for the completion of allotment
to enable them rush to the market to consolidate on their
investment.
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