Afribank offer commences November 1, 2007.
October 25th, 2007 Ogbuotobo Chuks || chuks@stockmarketnigeria.com
By Ogbuotobo Chuks
The public offer of Afribank Plc would finally commence on November 1, 2007. This was the resolve earlier this week as top management staff and shareholdders gave the nod for the offer to commence.
This brings the number of banks that have approached the market this year to raise funds locally and internationlly to nine. The offer is expected to be open up till December 10, 2007.The bank is offering 4,000,000,000 ordinary shares of 50kobo each at N25.00 per share.
Of the many areas that the bank is hoping of maximizing the funds, the bank intends to add 49 new branches to its existing network, of which 30 would be situated in lagos. According to the offer prospectus another N9.57 billion representing 10 per cent, is earmarked for information and communications technology infrastructure upgrade; while strategic business development such as ATM rollout, call centres, other electronic banking delivery channels will gulp N7.65 billion or 8.0 per cent.
Also, bank also hopes to invest about N5.74 billion or 6.0 per cent of the offer proceeds in equity investment in subsidiaries like Afribank Capital; Afribank Registrars; Afribank Estate; and ANP, Dublin. The directors have proposed that shareholders whose names appear in the register in the register of the bank, including subscribers to this offer, as at financial year ended March 31, 2008 will be eligible to participate in any dividend and/or bonus declared.
The offer is coming at a discount of N5.49 or 18.0 per cent to current market value of N30.49 per share.
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For some of you who are experienced at stocks/shares, will Afri Bank PO be a wise investment?
I am interested in buying some shares with Afribank and someother companies that are on the floor how do I go about it that i can manage them while i am still out the country like this, Please can some help me out?
Am willing to invest in afribankkindly give me a text if offer start 08035706676
What I did was to open a brokerage account in Nigeria with a brokerage company recommended by a friend here in United States. You can then monitor the performance of the investment through the internet. You should also keep in touch with your broker all the time. Make sure that the broker you choose is a reputable one.