Fcmb

[Stockbear]

This is what the analyst said yesterday,

FCMB riding on information made available to the market about the Helios investment partners “buy in” into the company, expectedly gained 4.99% with nothing available for sale. Outstanding bids as at the end of proceedings which stood at 2.5 millions is indicative of further upward reviews in prices in tomorrow’s session. Zenith (traded 7.4million) and GT Bank (traded 15.9million units) were able to maintain a steady posture after trading robust volumes for the day.

This is what happened today:

FCMB 9.28Xdiv 28/03/07 9.28 553,765,666 9.28 4.05

[Stockbear]

Investors of First City Monument Bank (FCMB) staked over N5 billion on more than half a billion shares on the stock market on Wednesday, accounting for more than 50 per cent of the day’s transaction.

At the close of business, the investors staked N5.14 billion on 553.77 million shares in 100 straight deals accounting for 61.5 per cent of the total volume of business for the day, which stood at 900.7 million shares worth N9.67 billion bargained in 10,284 deals.

Culled from the African Capital Market

[pumping]

Let's share our thoughts on the FCMB PO.

I've not seen the prospectus for any detailed analysis myself. If anyone has useful information to help in analyzing this IPO, please share with the house.

[pumping]

Get FCMB full 2007 prospectus here...

http://www.proshareng.com/blog/wp-co...us-_final_.pdf

[jimbo]

GuysI have some GTB stocks I had bought a while ago, I want to offload and buy some other stocks . I live abroad and travel a lot in my business. Iplan to study intensely the Nigerian Market and do some trading.Could I off load from abroad without a broker? If yes how? If not do I have to use the bank appointed broker? cheers

[pumping]

Originally Posted by jimbo

GuysI have some GTB stocks I had bought a while ago, I want to offload and buy some other stocks . I live abroad and travel a lot in my business. Iplan to study intensely the Nigerian Market and do some trading.Could I off load from abroad without a broker? If yes how? If not do I have to use the bank appointed broker? cheers

You should review the threads in the sub section.

http://www.stockmarketnigeria.com/forums/stock-brokers/

You will get answers to your questions and you can follow up further in the relevant thread.

This thread is for a different discussion and it is helpful for reference to post in threads relevant to the topic being discussed.

[pumping]

Interesting ..

Quote from FCMB prospectus

"The shares being offered rank pari passu in all respects with the
other existing issued Ordinary Shares of the Bank and will qualify for
any dividend or bonus that may be declared for the year ending 30th
April, 2008"

[Gengen]

Originally Posted by pumping

Interesting ..

Quote from FCMB prospectus

"The shares being offered rank pari passu in all respects with the
other existing issued Ordinary Shares of the Bank and will qualify for
any dividend or bonus that may be declared for the year ending 30th
April, 2008"

This is a very good way forward. However, they are able to say this because

1. The IPO is coming out early in the financial year of the bank.
2. The NSE enforcement of maximum 25% over-subscription is in place. This was also clearly stated in the prospectus.

With the above, a person can do its own analysis with the maximum 25% over subscription. FCMB's analysis with this over subscription is also in the prospectus.

I believe this IPO will get the maximum 25% over subscription with ease. Also remember, there is also the 80% underwriting by the issuers.

[pumping]

Originally Posted by Gengen

This is a very good way forward. However, they are able to say this because

1. The IPO is coming out early in the financial year of the bank.
2. The NSE enforcement of maximum 25% over-subscription is in place. This was also clearly stated in the prospectus.

With the above, a person can do its own analysis with the maximum 25% over subscription. FCMB's analysis with this over subscription is also in the prospectus.

I believe this IPO will get the maximum 25% over subscription with ease. Also remember, there is also the 80% underwriting by the issuers.

I agree only in part. FCMB will not see the money from this offer until at least the 27th of December. This is 8 months into their Fiscal year so they are being generous. I don't see how the new funds will generate much profit before they close the books in April.

[Dis GuY]

can someone please explain why banks clamour for over subscription.
apart from indicating the shares are very attractive to investors, do they managers include the excess fund in their projections?

[pumping]

Originally Posted by Dis GuY

can someone please explain why banks clamour for over subscription.
apart from indicating the shares are very attractive to investors, do they managers include the excess fund in their projections?

I don't think Banks really clamour for oversubscription but they won't like to be under subscribed as this could suggest a vote of no confidence. The marketing effort in making sure they are not undersubscribed especially by the issuing houses that have underwritten the offer produces this result of over subscription.

If you get more than you asked for and you feel there is a market, it's not a really a bad idea to absorb the excess funds.

Sometimes the companies make provision for over subscription. An example is the current FCMB PO where they have made provision for 25% over subscription.

[X-2-X]

Why has FCMB not made provisions for those non-resident Nigerians to participate in the offer? Or I'm I missing something?

[son5070]

Pls Gurus in the house,can we through more light on this investment considering their just ended PO.The information in their prospectus seems so good and they have one of the best PE in the banking sector.
Pls what do we think about this investment?

[son5070]

Hey guys,any comments on the released result of this bank!Look very good to me,am thinking long term

[dejino]

Any news on FCMB I.P.O? I hope it does not take so long as the FBN's own O! Any news about over subscription? When is allotment likely to happen? Gurus in the biz should please volunteer information. And Happy NewYear to you all.

[crtide]

Originally Posted by dejino

Any news on FCMB I.P.O? I hope it does not take so long as the FBN's own O! Any news about over subscription? When is allotment likely to happen? Gurus in the biz should please volunteer information. And Happy NewYear to you all.

FBN will likely be the shortest of the POs in terms of allotment, Certificate dispatch, listing and trading after close of PO. The share has even already been listed, while Oceanic's which took place way before it has not. So I think others will struggle to beat that except of course Zenith

[chidiohaz]

I quite agree wth you crtide. FCMB is already listed and selling for 20.47 as t 3/1/08 tradings whereas Oceanic is still dragging her feets. So far, I'm being informed that FCMB could absorb more subscribers in the event of oversubscription in view of the 25% addtionals in cases of oversubscription.

[riskreturn]

Originally Posted by chidiohaz

I quite agree wth you crtide. FCMB is already listed and selling for 20.47 as t 3/1/08 tradings whereas Oceanic is still dragging her feets. So far, I'm being informed that FCMB could absorb more subscribers in the event of oversubscription in view of the 25% addtionals in cases of oversubscription.

An official notification to clients this afternoon by CSL Stockbroker (whose parent company is FCMB) indicates that while the offer was over-subscribed, no one would get less than 80% of what was subscribed for.

[chidiohaz]

Thanks for that info riskreturn!!!

[chymex]

Originally Posted by chidiohaz

I quite agree wth you crtide. FCMB is already listed and selling for 20.47 as t 3/1/08 tradings whereas Oceanic is still dragging her feets. So far, I'm being informed that FCMB could absorb more subscribers in the event of oversubscription in view of the 25% addtionals in cases of oversubscription.

@ Chidiohaz, did I hear you say that FCMB last offering is already listed? I guess you meant to say FBN, otherwise please provide us with the source of that information. I wonder how that jives with the fact that they are still struggling with allotments.