I must say that I am impressed with Skybank strategy and it shows that they have direction. If you look at it, they had a share reconstruction and reduced their share to about 6.?B, Managed the price to about N17 and built a value at the price. They released their 1st quater result with PAT of about 242% change and their PE ratio as at today is 17.24 (cheapest in banking)
They are out to raise only N50B with only 3.7B shares and out of this 1.5B will go for right at N12.5 and 2.?B for public at N14.
I started monitoring this bank when its share price was n9 and bought little and I think it is becoming interesting.
Anyway I ordered for more on the floor today because i will like to buy more of the right and also have 35k dividend. I am sure that after this offer which will be oversubscribed,they will push up the price and come back to market at a higher rate (say n20 - n25) to raise bigger money and that is exactly what UBA will do. They will build their PE up and push up the price and come back to market at N4?
It is actual better to sell less shares at high price than to selling more at lower price. Anyway SKYBANK is a short and medium term buy.
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