I Need urgent advice please ( First Bank Stocks)

[Yomik]

Hi everyone,

I like to buy First bank share, but I’m out of Nigeria. But they told me that I need Bank account number in Nigeria to buy share this day. Did any one know anything about this? I don’t have one.
My second question is that does First Bank worth to invest a lot of money on it. This is my first stock to buy in Nigeria. Please help me out.

Thanks



Yomi

[anekwlc]

Yomik,
I don't know whom you are talking to but I assume you have a stock broker. The most important thing is for your money to get to your broker and your signed form for the quantity you want to buy.
It is alway better to be dealing (have an account) with registered stock broking firm and record your transactions. I am not in Nigeria and thats what i do
On your second question, In my opinion I think first bank worths investing on [Gurus can correct me] because of their track records. however, i see it being over subscribed for almost averybody i know wants to have a share and this will mean pegging allocation and returning money to subscribers -- it is up to you-

[Stockbear]

Originally Posted by Yomik

Hi everyone,

I like to buy First bank share, but I’m out of Nigeria. But they told me that I need Bank account number in Nigeria to buy share this day. Did any one know anything about this? I don’t have one.
My second question is that does First Bank worth to invest a lot of money on it. This is my first stock to buy in Nigeria. Please help me out.

Thanks

Yomi

Hi Yomi - If you can, set up with a broker to buy into Firstbank. The upside is that you won't have to go through the palava of having to getting your share certificates verified after the offer.

Alternatively, if you have someone you truly trust, you can sign/fill in all required docs, scan and email them. You will also need to have a secure contact address, if not PO Box for correspondence in Nigeria.

If you intend to invest a lot of money like you said, then may be you are definitely better of transferring the amount directly into a stockbroker's account, if you already have a bank account in Nigeria and if you are lucky the broker also banks with your bank, this makes an online transfer easy otherwise, someone will still have to receive the funds on your behalf and pay into the stockbrokers account, retaining all docs/info so as to relate same to the stockbroker for verification, and your record. All docs must be scanned and emailed to you, even with the stockbroker you deal with.

Hope this helps.

[Yomik]

Thanks,
Though I don’t have any brokers right now but I have someone I trust. Problem is that we have never play with large amount of money with each other before. What I think I will do is that I might go to Niger to finalized thing by my self. One of my questions I will like you to answer if you know the answer to it is that did I need to have bank account to buy stocks in Nigeria

[Avocado]

Yomik: you've got good advice already.

Considering you're not in Nigeria:

1) Get a good stockbroking firm. Although you don't need one to buy into a Public Offer; but as Stockbear wrote, you'll need one. You can have good recommendations.

2) Since you don't already have current and domiciliary accounts in Nigeria, you could make a direct transfer in hard currency to a Stockbroking firm after making a contact with one; this is why it needs to be a good and reputable firm. A bank account will make it quite easy for later transfers, and you will be able to do that remotely. You can have good recommendations.

3) Opening a stockbroking account is slightly less troublesome than a current account with a bank; with the necessary documentation, this could be done in time for you to buy into the FIRSTBANK offer.

4) There is the risk of over-subscription, true, but that's a risk you may have to take for an offer at a big discount on the current market price of FIRSTBANK. A good stockbroking firm will do the running-around for you.
.

[Avocado]

Originally Posted by Yomik

Thanks,
Though I don’t have any brokers right now but I have someone I trust. Problem is that we have never play with large amount of money with each other before. What I think I will do is that I might go to Niger to finalized thing by my self. One of my questions I will like you to answer if you know the answer to it is that did I need to have bank account to buy stocks in Nigeria

You were posting as I typed the last post.

You necessarily don't need a bank account to buy shares in a Public Offer. But if you'll be dealing with a Stockbroker, a bank account will become necessary. Business may become impossible without it.

Also this: you don't need to travel to Nigeria to have things done. You also don't necessarily need anyone as middleman. I can tell you that from experience.

.

[Yomik]

thanks a lot

[Yomik]

Originally Posted by Avocado

Yomik: you've got good advice already.

Considering you're not in Nigeria:

1) Get a good stockbroking firm. Although you don't need one to buy into a Public Offer; but as Stockbear wrote, you'll need one. You can have good recommendations.

2) Since you don't already have current and domiciliary accounts in Nigeria, you could make a direct transfer in hard currency to a Stockbroking firm after making a contact with one; this is why it needs to be a good and reputable firm. A bank account will make it quite easy for later transfers, and you will be able to do that remotely. You can have good recommendations.

3) Opening a stockbroking account is slightly less troublesome than a current account with a bank; with the necessary documentation, this could be done in time for you to buy into the FIRSTBANK offer.

4) There is the risk of over-subscription, true, but that's a risk you may have to take for an offer at a big discount on the current market price of FIRSTBANK. A good stockbroking firm will do the running-around for you.
.

okay what is going to happen if there is over-subscripition, they will return all the money back to me or what

[Stockbear]

Originally Posted by Yomik

okay what is going to happen if there is over-subscripition, they will return all the money back to me or what

I the event that you don't get allocated all the shares you applied for, you leftover funds will be returned to you in due course.

[Avocado]

That's correct.

If there's an oversubscription and the excess is not absorbed, funds will be returned. Cheques will be issued; and a bank account will be convenient to reclaim the funds.

.

[dotunk]

yomik,

i think you have got the best advice.

1. get a broker - trustworthy

2. open an account with a bankin the country (only for payment of dividends)

3. Open a P. O. Box of yours (nobody is that trust worthy except yourself)

4. keep in touch with your broker all times

4. Get down to Nigeria (if you can) before the offer closes

[CINO]

In addition, choose a stockbroker with online facility where you can check your account and stock valuation on line.

I know both FSDH and Cashcraft. Also heard Zenith has as well but I have not used them.