| Deap Capital set for
listing
By OMODELE ADIGUN
Friday,
March
23, 2007
As it rolled out more than 377 million shares for public
subscription,Deap Capital Management & Trust is set to
be the first stockbroking firm to be listed on the Nigerian
Stock Exchange(NSE).
According to its Managing Director, Mr. Emmanuel Ugboh, the
company is being repositioned as leading financial management
firm, which will culminate in the listing of its shares on
the NSE.
The hybrid offer of the company opened last Monday,in order
to give investors an opportunity to further diversify their
portfolio.
Deap Capital is a financial derivative company specialising
in funds management, capital market operations, financial
advisory services, portfolio,and pension funds management.
The company, which also has interests in oil and gas and mortgage
banking , aimed to be the first of its kind to be listed on
the NSE after the fund raising exercise.
A total of 375.266 million shares of 50 kobo each are being
offered the public at N2 per share while its present shareholders
are being given a Rights Issue of 115.692 million shares of
50 kobo each at N1.50 per share.
The Chairman of the company,Chief Sylvanus Ezendu, had explained
that after deducting the cost of the issue, Deap Capital would
realise a net proceeds of N868.706 million.
According to him, the funds will be used to provide adequate
working capital for the company and its subsidiary/associated
companies which include its stockbroking arm, Resort Securities
Limited, Resort Savings and Loan Limited and DVCF Oil &
Gas Plc.
Giving a breakdown of how the funds would be utilised,its
Managing Director, Mr. Emmanuel Ugboh, said that 42 per cent
would be used as working capital; 28 per cent to recapitalise
its mortgage banking associate; 17 per cent for the recapitalisation
of its stockbroking firm and seven per cent for the recapitalisation
of its oil and gas associate.
On the future outlook of the company,he said: “Adequate
capitalisation that will result from this exercise which we
have embarked upon and subsequent ones in the future, given
our wider access to funding by the NSE quotation, will ensure
that we have the ability to absorb shocks arising from financial
system.”
Deap Capital, which commenced operations in 2002, has raised
its profit after tax from N2m in 2003 to N91m in 2006.
Sterling Capital Markets Limited and Unity Bank Plc are the
joint issuing houses assisted by seven stockbroking firms.
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