Spring bank shows strong prospects.
November 25th, 2006 Ogbuotobo Chuks || chuks@stockmarketnigeria.com
By Ogbuotobo Chuks
With barely a week after been listed on the Nigerian stock exchange due to the merger as a result of the recapitalisation exercise, Spring Bank Plc seems to be attracting the attention of most investors.
This is evident, as the financial institution experienced a 27 percent increase in its share price after been listed. The shares of Spring Bank were listed after it share reconstruction exercise on November 9,2006 at N6.00 per share closed trading on the floor of the exchange on November 14, 2006 at N7.64 per share.
Some analysts in the industry are of the opinion that this trend would not last for long, but like it is known, shares sell for what they are worth. It is only a matter of time before investors really know what stuff the bank is made of. The bank was quoted with the listing of 11.3 billion ordinary shares of 50 kobo each.
The listing followed the reconstruction of over 42 billion shares that came about as a result of the consolidation of six banks. They include ACB International Bank, Citizens International bank, Fountain Trust Bank, Guardian Express Bank, Omega Bank and Trans International Bank.
The ratio of allotment is 1 for every 4 previously held. The shareholders funds of the bank currently stands at N34 billion. It is expected that the bank would focus more on retail banking and as such increase its dominance and relevance in the banking sub-sector of the Nigerian economy.
(No Ratings Yet)
Loading ...