AG Homes Savings and Loans Plc

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AG Homes to raise N4.5bn through hybrid offer
By Ifeanyi Onuba
Published: Thursday, 21 Aug 2008

AG Homes Savings and Loans Plc has concluded plans to raise the sum of N4.5bn through hybrid offer.

This, it said, was part of efforts aimed at increasing its equity base in anticipation of the regulatory increase in shareholders’ funds for primary mortgage institutions.

The chairman of the company, Dr Charles Osueke, who disclosed this during the company’s annual general meeting in Lagos, on Wednesday, said that the board of directors had approved an initial public offer of 2.9 billion ordinary shares of 50 kobo each at an offer price of N1 per share; and a rights issue of two billion ordinary shares at 80 kobo per share.

He said the bank, which was incorporated in 2004, would have its shares listed by introduction on the floor of the Nigerian Stock Exchange within the next six weeks.

The Managing Director, AG Homes, Mr. Tony Ewelike, while speaking on the company’s financial performance, said that despite the challenges facing the industry, the company had recorded an impressive result in the 2008 financial year.

The bank’s audited result for the year ended March 31, 2008, showed that gross income rose by 60 per cent from N259.4m recorded in 2007 to N413.7m in 2008. Profit after tax also grew by 342 per cent, up from N19.4m in 2007 to N85.9m in the year under review. Shareholders’ funds rose by 179 per cent from N223m in 2007 to N622m, total asset grew by 96 per cent from N1.65bn to N3.23bn, while loans and advances increased by 65 per cent from N240m in 2007, to N395m.