First Inland floats N100bn hybrid offer

[iharry]

By Obinna Chima
Published: Monday, 31 Dec 2007
First Inland Bank has concluded arrangements to return to the capital market to raise about N100bn fresh funds.

The hybrid offer, which is expected to be a combination of rights issue, public offer and irredeemable non-cumulative preference shares, will be used to enhance the bank’s growth strategy.

Details of the offer, which were ratified at the bank’s completion board meeting in Lagos on Friday, showed that 5,000,000,000 ordinary shares of 50 kobo each, at N9.50 per share would be offered to the public.

The bank said 4,000,000,000 irredeemable non-cumulative preference shares of 50 kobo each at N9.50 and rights issue of 968,863,000 ordinary shares of 50 kobo each at N8.50 per share will be offered to existing shareholders.

The offer, which opens on Thursday, January 3, 2008, is expected to close on Thursday, January 31, 2008.

The offer is coming at a discounted price of N3.80 for rights issue and N4.80 for public offer as the bank’s share price was frozen at N13.30 by the Nigerian Stock Exchange upon the bank’s application to return to the market.

[magnus]

Guys Happy new year! I thank you all for all the information you made accessible to all.Please do you guys think firstinland bank IPO is a good buy?

[chidiohaz]

Having studied the prospectus of FirstInland Bank and them coming with a PO of 9.50 as against 13.30 at which it traded last before going on TS, I strongly believe that it's a very good buy.

Reasons: Buying now at 9.50, one already has gained 40% from the 13.30 at which it stood before going on TS. Another reason is that following the 2 year comparisons of the Banks Reports of 2007 and 2006 and then the forcasted fundamentals, indications for me is strongly point up that this Bank is likely to rise in virtually in the same trend BankPHB and Intercontinental rose to where they are today today.

I wish you all good buying!!!

[pumping]

Originally Posted by chidiohaz

Having studied the prospectus of FirstInland Bank and them coming with a PO of 9.50 as against 13.30 at which it traded last before going on TS, I strongly believe that it's a very good buy.

Reasons: Buying now at 9.50, one already has gained 40% from the 13.30 at which it stood before going on TS. Another reason is that following the 2 year comparisons of the Banks Reports of 2007 and 2006 and then the forcasted fundamentals, indications for me is strongly point up that this Bank is likely to rise in virtually in the same trend BankPHB and Intercontinental rose to where they are today today.

I wish you all good buying!!!

Please can you share the prospectus.

Thanks.

[chidiohaz]

Sorry, I don't have the prospectus in data form electronically rather I have them in prints

[nezvest]

Where did you collect the prospectus from. I mean which bank or broker?

[nezvest]

I read in a newspaper few weeks ago about the move by House of Rep to stop further raising of fund by banks from the capital market. How can this affect the proposed pubic offers by FirstInland Bank, Union Bank,Wema Bank..others?

[nimi23]

Please if anymore gets a hold of the electronic version of the prospectus could they post it on this thread. Thanks

[crtide]

Originally Posted by nezvest

I read in a newspaper few weeks ago about the move by House of Rep to stop further raising of fund by banks from the capital market. How can this affect the proposed pubic offers by FirstInland Bank, Union Bank,Wema Bank..others?

They can't do that, they can only demand that the financial regulatory authorities put the banks through more rigorous checks and inspections.

[chidiohaz]

So far, I have searched all my financial tools for the electronic copy of FirstInLand Bank to no avail. But I want to direct Nezvest to go to any Branch of FirstInland Bank and demand for a copy of the prospectus and surely you will get one.

[chymex]

@ Chidiohaz,

The discount on the offer is 29% and not 40%. Be guided.

[chidiohaz]

Thanks my guy you're right. It's 29% and not 40% discounted by FirstInland Bank. Apologies!!!!!! Didn't edit b4 posting!!!

[threecrown]

I think the electronic copy of firstinland po should be ready on there website very soon. they should be working on it as i could only view the front page .
Welcome to First Inland Bank

[riskreturn]

Originally Posted by chidiohaz

Sorry, I don't have the prospectus in data form electronically rather I have them in prints

Hi Chidiohaz,

It is a bit challenging to lay hands on the prospectus. Meanwhile, from the paper copy of the prospectus at your disposal, can you please tell us what the projected P/E ratio is for each of 2008 and 2009? The P/E ratio based on historical audited accounts for 2007 is about 35 times (using the FSDH daily posting that puts the P/E ratio at 49 times, based on technical suspension price of 13.30 Naira) at the offer price of 9.50 Naira. Unless dramatic profit expansion is projected for the ongoing financial year and that of 2009 (and probably beyond), the pricing of the offer would likely be too expensive to worth a further consideration. That is why I am curious to know the projected P/E ratios for this and the next few years. The so-called discount of offer price vis-a-vis the often stage-managed technical suspension price can be very misleading.

[riskreturn]

Originally Posted by riskreturn

Hi Chidiohaz,

It is a bit challenging to lay hands on the prospectus. Meanwhile, from the paper copy of the prospectus at your disposal, can you please tell us what the projected P/E ratio is for each of 2008 and 2009? The P/E ratio based on historical audited accounts for 2007 is about 35 times (using the FSDH daily posting that puts the P/E ratio at 49 times, based on technical suspension price of 13.30 Naira) at the offer price of 9.50 Naira. Unless dramatic profit expansion is projected for the ongoing financial year and that of 2009 (and probably beyond), the pricing of the offer would likely be too expensive to worth a further consideration. That is why I am curious to know the projected P/E ratios for this and the next few years. The so-called discount of offer price vis-a-vis the often stage-managed technical suspension price can be very misleading.

Addendum:

Since I posted the above message, I have re-checked the 2007 audited account to find that writing off of goodwill was responsible for the high P/E ratio noted above. the goodwill written off was about 50% of profit before the write off, implying that, without writing off goodwill, the P/E ratio should have been about half of what is referred to above - which would not be too high.

[schokoperle]

Hallo All,
I do have access to the IPO Prospectus of FirstInland. Can someone, who did tell me what FirstInland intend to use the IPO funds for?
Thanks,

[schokoperle]

Hallo All,
I do not have access to the IPO Prospectus of FirstInland. Can someone, who did tell me what FirstInland intend to use the IPO funds for?
Thanks.