By Ogbuotobo Chuks

The Nigerian stock exchange has once again come alive with the commencement of the much awaited offer of Bank PHB (PlatinumHabib Bank Plc).

The offer price which is N17 per share is discounted to the tune of 33.35 percent or N8.51, as the current price at which it was placed on suspension is N25.51.

So far this year, the bank has had a good run especially after the share reconstruction exercise. The bank has hit an all high of N35.00 so far, and was able to pay a dividend of N0.70 and issue a bonus of 1 for 4 to shareholders this year.

According to bank sources,”Investors who buy into the Bank PHB IPO at N17 per share may be in a great return as some financial analysts have put the bank’s fair price at N35 per share. This may see the bank repeating the 400 per cent return given to shareholders who bought into the bank’s private placement in 2005 at N1.95 per share.

Also,it is expected that proceeds of the offer would be used in financing its fast growing expansion in the near to medium term, enhancing its service delivery infrastructure and diversifying its investor base to include foreign funds providers amongst other things.

In the first quarter result ended September 30, 2007, the bank recorded 177 per cent growth in gross earnings from N5.2bn in the corresponding period last year to N14.5bn in 2007. The bank’s profit after tax stood at N3.5bn in 2007 as against N1.1bn in the corresponding period last year, representing 220 per cent increase.

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