First Bank Plc

[SKO]

http://www.sunnewsonline.com/webpage...03-2007-02.htm

[ghm]

Won't they push up FBN shares too before they bring out the PO?

....because thats trademark and characteristics of Nigerian shares/Public offers.

[Stockbear]

Finally a decision has been made and yes Ghm was right! First Bank share price has been frozen at N40.40. Although we must commend First Bank for not being as obvious as UBA's massive price growth within a short space of time. They fought and struggled to reach its current price of N40.40

They are even smarter, seeing that they have learnt front UBA's error of not giving investor's a reasonable discount on their prices, which prompts people like me to stay away from their PO (public offer). I would rather pay the extra Naira and buy from the secondary market, avoiding the share cert wait.

The Punch
First Bank applies to raise N99.3bn from capital market
By Festus Akanbi and Goddy Egene
Published: Wednesday, 11 Apr 2007

First Bank of Nigeria Plc on Tuesday began the process of raising fresh funds from the market with an application to the Nigerian Stock Exchange. The bank applied to offer 1.6billion ordinary shares of 50 kobo each to be sold at N33 per share for public subscription and 1.5billion ordinary shares of 50 kobo each at N31 per share as Rights Issue to existing shareholders.

As a result of the application, the NSE has placed the share price of First Bank on technical suspension at N40.40 per share. This implies that throughout the period of the offer, trading in the shares on the floor of the exchange would be done at N40.40.

Besides, prospective subscribers to the public offer at N33 would be enjoying a discount of N7.40, while investors that would be exercising their rights at N31 per share would be doing so at a discount of N9.40 since the current market price is N40.40.

http://www.punchontheweb.com/Articl....20070411023465

[Stockbear]

This is one merger we have been all waiting for. So buy as much as you can during the upcoming PO. This automatically assures you your investment appreciates considering the share price of ETI. Currently stands at N185.

BusinessDay
First Bank, Ecobank merger in final stages
April 8th, 2007

First Bank of Nigeria plc and Ecobank Transnational Incorporated (ETI) are now set to wrap-up their long running merger negotiations before October, senior level sources at the Ghanaian subsidiary of ETI have informed Business Day.
Godwin NNANNA, Accra

The negotiations, which had ran in fits and starts since it began in November 2005, received fresh momentum when senior executives of the banks led by their respective managing directors met in Ghana recently.

http://www.businessdayonline.com/?c=45&a=12501

[bwalaman]

Thanks Stockbear for all the updates and info you have been sharing...

Commenting on the blog on "past glories", the fact is that First Bank, and to a lesser extent Union Bank, have a dominant position in the market and represent tried and tested banks. Note senseless the queues, even though First does not really have good service (compared to the new gens) – people feel safer.

First Bank is getting competition, not from the banking sector, but from Dangote. Remember Dangote just passed First Bank as the most capitalized, after the IPO, First Bank might just reclaim that position.

On the merger with ETI, I personally hope it doesnt happen- this is like a marriage between a heavy weights and a heavy weight wanna be- don't see who will be in the driver seat. Logically, First Bank- I have doubts.

It would be better if it was a straight buy-out...

First Bank is better off buying out one of the smaller new generation banks to sexy up itself…

[Stockbear]

A worker at First Bank has given the PO date as the 5 May. Let's see if this date is confirmed officially.

Or is there is anyone in the house that can confirm this date?

[Stockbear]

Will First Bank retain its previous top dog spot?

The Tide
First Bank MD expresses hope on hybrid offer
Tuesday, Apr 24, 2007

The managing director of First Bank of Nigeria Plc, Mr Jacobs Moyo Ajekigbe has said the new capital that would be raised from its expected hybrid offer would help the bank to maintain its leadership position in the country’s banking industry and the African continent.

Speaking to shareholders at an extra-ordinary general meeting in Lagos, he said the new capital drive was being propelled by the bank’s vision which is to be Africa’s bank of first choice.

He explained that the funds would assist the bank in the modernisation of its branches and to pursue growth of its business.

He said although, the bank had upgraded some of its branches to meet up with the challenges of the times, there were still some branches that needed to be elevated in terms of architecture and ambience.

http://www.thetidenews.com/article.a...olumn=BUSINESS

[Stockbear]

After all the noise made and time wasted, what a shame!

Guardian
30 April
Ecobank shelves merger plan with First Bank
By Gbenga Agbana

THE waiting game for the emergence of West Africa's largest financial institution, courtesy of the proposed merger of First Bank of Nigeria Plc and Ecobank may be on for much longer.

Reason: The two financial institutions have agreed to shelve the merger deal, with hopes of its consummation now hanging on the tentacles, going by a statement from Ecobank Transnational Incoporated's Chairman, Mr. Mande Sidibe, in Cotonou, Benin Republic, at the weekend.

The suspension came on the heels of improved operational performance of Ecobank and First Bank's move to shore up its capital base by N100 billion through an hybrid offer.

Ecobank, at its yearly general meeting in Cotonou, at the weekend, announced a 70 per cent rise in its profits, from $50.94 million in 2005 to $86.4 million last year.

Sidibe said at the yearly general meeting that the agreement between the two banks 'expired' before conclusions.

http://www.guardiannewsngr.com/business/article01

[Stockbear]

Good news for all and sundry

Guardian
30 April
First Bank emerges first beneficiary of capital issue cost regime

FIRST Bank of Nigeria Plc yesterday emerged the first beneficiary of the capital issue cost regime newly introduced by the Federal Government. Equally, the bank was also granted the concession to allot its proposed N100 billion hybrid offer through electronic platform, thus making it the first quoted company to enjoy that facility.

Under the new cost regime, announced by the Minister of Finance, Mrs. Nenadi Usman, the average equities transaction costs in the primary market, which currently stand at 62.92 per cent have been reduced to 4.32 per cent, while transaction costs on bonds have been reduced from 7.03 per cent to 4.79 per cent. For the secondary market, total transaction costs on equities have also been reduced.

Announcing the package yesterday to stockbrokers and parties to the proposed offer during the quotation committee meeting, the president of the Nigerian Stock Exchange (NSE), Dr. Ayoola Oba Otudeko said: "On behalf of the council of the Nigerian Stock Exchange ... it is my pleasure to receive your application on behalf of your clients. The issue is a landmark one by its size and the particulars of the principal, First Bank. It is the first of its kind, it is history given its age, it's a wonderful institution and it is a respected stock on the Stock Market. We wish to congratulate First Bank that it is coming to the market at a time we in the Stock Exchange are trying to ensure that the cost of raising funds is cheaper.

http://www.guardiannewsngr.com/capital_market/article01

[Stockbear]

I posted this issue earlier today on Nairaland;

So I ask, have you considered the upcoming First Bank offer? It falls under the new policy of the SEC, which stipulates a minimum of 80% underwriting. With regards to First Bank, this means N80 billion has to be underwritten. Wow!

With this new recapitalisation on going in the capital market, who will step up to take this risk? Will this hinder the kick off of the offer? This is something that needs to be worked out before the start of the offer.

At least we can be certain that subsequent offers won't be manipulated as was done by UBA

What's your take on this issue? All the gurus in the house let's hear from you.

[adeniyia]

Hi guys,
Does anyone think this first bank hybrid offer is a "definite" buy?

[olusolakemmy]

Well, in my own opinion, it is a definite buy, infact, i am presently talking to a bank for a possible loan for the offer
1st bank look good on the medium and long term because of consistent bonus issue, despite price variation and price adjustment after bonus, the recovery rate of 1st bank is very fast.
I am a share holder in 1st bank, i bought it at N32 in may 2005, they r selling their offer at
N33 in may 2007, so to say, no capital appreciation, but the quantity am holding has quadriple after 1for4 twice, 1for 70 once and then 1for1. if this continue, even without capital appreciation, on the long run, you have more than a good bargain.
so, y not?

[alhakeem]

Hi,
You already had a more than 60% capital appreciation in the 3 splits !

[Avocado]

You're about right with the rough estimation; the scrip shares issued coupled with the price bounce-back confirm that there's been money earned from buying shares. This elastic behaviour after stock splits is an enticing feature of fundamentally strong stocks like that of FBN. The gains can be precisely computed to give an idea of exactly how much has been reaped: factor in the dividends issued (which is usually forgotten), the investments (including the cost of the shares and any commissions paid), the scrip shares, price bounce-back and inflation (this puts everything in good context); this can be implemented in a simple spreadsheet.

.

[Tayo]

I agree with the First bank's elastic bounce back abilities. NBPLC tried the same thing way back and have been unable to bounce back. I also think first bank is a BUY BUY BUY!!!

[Geeman]

Originally Posted by adeniyia

Hi guys,
Does anyone think this first bank hybrid offer is a "definite" buy?

It is a definite buy for me. I will encourage you to delay no more: Just do it!

[adeniyia]

Thanks guys for your insight. From the various analysis here, I think its going to be a good buy. One thing though, I am not very keen on dividend payment. I beleieve more in capital appreciation, so all these stock price dilution just makes me wonder what the real intentions of these companies are.
Like someone mentioned, its been bad news for NB since their stock devaluation exercise.

Any thoughts

[c kenneths]

Originally Posted by adeniyia

Thanks guys for your insight. From the various analysis here, I think its going to be a good buy. One thing though, I am not very keen on dividend payment. I beleieve more in capital appreciation, so all these stock price dilution just makes me wonder what the real intentions of these companies are.
Like someone mentioned, its been bad news for NB since their stock devaluation exercise.

Any thoughts

I have already paid for the first bank offer this teusday, the offer is very good for both medium and long term players but for short timers, there is this nagging feeling I have after somebody who should be in the know told me that the offer will be electronically credited to cscs.

This means that some investors would have started trading theirs thereby reducing the rate of capital appreciation.

[windywendy]

Are you sure this electronic crediting thing is real? That's what DSR said they would do, only for the registrars to come out later and tell us that they changed their minds at the last minute. I ended up having to chase certificates all over the place and wait for what seemed like forever to get them verified and dematerialized into my cscs account.

[dotunk]

hi,

i think FBn is a good buy anyday even if it is overpriced.

like has been said, FBN has a good history of div pay out and bonus.

i have been with FBN for 4years now and have never regreted it except for when i bought it at its highest price in 2004,but since then, its been cool.

i recomend FBN anyday to anyone who plans for his/her future.

pss. am even taking a loan to buy some units... tells you how much it is important.