Centage raises N3.0 billion through Placement

[solainvest]

Proshare News

It seems it was sold to only Institutional Investors.

This sector is a must watch.

[sammysparkle]

Folks,

I hear Centage Savings and Loans are coming up with a PP. Gurus in the house, can you shed more light as usual?


see:Proshare News


Ciao!

[BLUEMONEY]

Originally Posted by sammysparkle

Folks,

I hear Centage Savings and Loans are coming up with a PP. Gurus in the house, can you shed more light as usual?


see:Proshare News


Ciao!

this company has already done an institutional PP. the bigger boys have bought everything. but they are planing an IPO after listing.

[solainvest]

Originally Posted by BLUEMONEY

this company has already done an institutional PP. the bigger boys have bought everything. but they are planing an IPO after listing.

Do you think some big boys might sell down at a premium?

[BLUEMONEY]

Originally Posted by solainvest

Do you think some big boys might sell down at a premium?

anything can still happen we cannot predict this market or the people operating in it. who would believe that universal insurance would do another PP less than a year after they did the first one. the institutional investors in this company is also an insurance company so they can as well offload some of thier holdings at a premium.

[hispy99]

Centage share capital hits N3bn, heads for capital market
Proshare News

[hispy99]

CBN Approves More Branches for Centage
09.17.2008

The nation’s apex bank, Central Bank of Nigeria, (CBN) has given approval for four additional branches to Centage Savings and Loans Limited, one of the nation’s leading Private Mortgage Institutions (PMI).

The approval letter was handed over to Centage last week, and was signed by a Director in the Other Financial Institutions Department of CBN. The approved branches are to be sited in Abuja, Owerri, Umuahia and Enugu
Briefing newsmen, the Managing Director of Centage, Mr. Gabriel Ndukwe Johnson, said the branch expansion programme of the mortgage bank was part of the strategic repositioning of the bank, which is aimed at ensuring improved services for its numerous customers, adding that the bank is also awaiting the approval of more branches from CBN.

Currently, Centage has four branches including the Head Office branch. The additional four new branches will put the bank’s network of branches to eight. Johnson said the advantage of this enlarged network is that it will reduce drastically the banks dependency on the correspondent banks in serving its customers.

The customers would now have direct interface with the bank and gain the excellent service offerings of Centage.

“Our usual experience has been that the commercial banks usually poach our customers when they go to pay in or make withdrawals. So the threat of losing customers to correspondent banks will gradually be overcome. Now, we can interface with our customers directly and excellently,” said Johnson.
Johnson disclosed that CBN has to conduct a thorough evaluation of the status of the bank in terms of its financials, and performance for the last three years before giving the approval.

While describing the CBN approval as a big mileage, Johnson disclosed that each location has its strategic advantage as Centage is set to be the market leader in the business environment of the new branches. Centage as a mortgage bank will target a larger part of the market in order to create mortgages for the public sector,” he said. He described the expansion exercise as a fulfillment of the dream of the bank to have its services extended directly to the customers and beneficiaries, and also as part of the process in the dream of the bank to be a leading PMI in Nigeria and Africa in the next five years.

[hispy99]

Centage to raise N10 bn through a hybrid offer
Posted Thursday, October 16, 2008

Proshare NI



October 16 2008 at 15:51 GMT

Centage Savings and Loans Limited (CENTAGE) is set to raise N10 billion through hybrid offer. Johnson Gabriel Ndukwe, Managing Director/Chief Executive Officer (MD/CEO) of the mortgage institution confirmed this to Proshare NI today in Lagos Nigeria.

Ndukwe affirmed that the N10 billion would be raised through Debenture and Private Placement (PP).

He also confirmed to Proshare NI that both issues would be sold at the price of N3.00 per share respectively.

“We would open the hybrid offer on October 20, 2008 and close it on November 26, 2008” Ndukwe said.

He further affirmed to Proshare NI that the Board of Director (BOD) of the company would meet next week to finalise on the proposed hybrid offer as it opens.

As at the time of filling in this report, Ndukwe declined to give further details as regards the proposed hybrid offer of Centage Savings and Loans.

It could be recalled that in the early part of the second quarter (Q2) of year 2008, the mortgage company sought to shore up its Share Capital to N3.0 billion through an institutional Placement.


This Ndukwe confirmed to Proshare NI was successful and that Centage Savings and Loans has gone past the N3.0 billion level. “We are no longer talking about N3.0 billion Share Capital, we have since gone past that” he said.

Also he had affirmed that Centage Savings and Loans would be listing its shares on the Floors of the Nigerian Stock Exchange (NSE) between April 2008 and next year.

Apart from the above, Ndukwe had also confirmed to Proshare NI that the Primary Mortgage Institution (PMI) would be requiring about N30 billion for business expansion in the mortgage banking and construction sector of the Nigerian economy “We really want to go deep into mortgage banking and the construction sector fully; more especially on housing development” he affirmed.

[BLUEMONEY]

Originally Posted by hispy99

Centage to raise N10 bn through a hybrid offer
Posted Thursday, October 16, 2008

Proshare NI



October 16 2008 at 15:51 GMT

Centage Savings and Loans Limited (CENTAGE) is set to raise N10 billion through hybrid offer. Johnson Gabriel Ndukwe, Managing Director/Chief Executive Officer (MD/CEO) of the mortgage institution confirmed this to Proshare NI today in Lagos Nigeria.

Ndukwe affirmed that the N10 billion would be raised through Debenture and Private Placement (PP).

He also confirmed to Proshare NI that both issues would be sold at the price of N3.00 per share respectively.

“We would open the hybrid offer on October 20, 2008 and close it on November 26, 2008” Ndukwe said.

He further affirmed to Proshare NI that the Board of Director (BOD) of the company would meet next week to finalise on the proposed hybrid offer as it opens.

As at the time of filling in this report, Ndukwe declined to give further details as regards the proposed hybrid offer of Centage Savings and Loans.

It could be recalled that in the early part of the second quarter (Q2) of year 2008, the mortgage company sought to shore up its Share Capital to N3.0 billion through an institutional Placement.


This Ndukwe confirmed to Proshare NI was successful and that Centage Savings and Loans has gone past the N3.0 billion level. “We are no longer talking about N3.0 billion Share Capital, we have since gone past that” he said.

Also he had affirmed that Centage Savings and Loans would be listing its shares on the Floors of the Nigerian Stock Exchange (NSE) between April 2008 and next year.

Apart from the above, Ndukwe had also confirmed to Proshare NI that the Primary Mortgage Institution (PMI) would be requiring about N30 billion for business expansion in the mortgage banking and construction sector of the Nigerian economy “We really want to go deep into mortgage banking and the construction sector fully; more especially on housing development” he affirmed.

I Guess the institutional investors in this company are warming up to offload because I am sure they did not pay 3 Naria per unit when they injected 3 Billion Naira into this company.

[hispy99]

oya, make analysis begin. KoD, where you dey?

[knightofdelta]

Originally Posted by hispy99

oya, make analysis begin. KoD, where you dey?

Seems as if the mortgage industry is about to chase the equity market into the bush. Make I drink this memo to see if it is worth it. But my instincts tell me that it is not likely. We have too good bargain on the floor than to be chasing illiquid PPs around.

[knightofdelta]

I cannot waste my time on this PP. Forecasted results show PEs of 33, 19 and 13 respectively for 2009, 2010 and 2011. This is based on 7 billion ordinary shares. Then they are also floating an irredeemable and convertible debenture that has the potentials to dilute the existing number of shares further. Plus they have not even applied to SEC for listing on NSE. Obviously, some of the shares they are offering are more or less offer for sales.

The shares are offered at N1 per share and if SEC rules are followed, there will be a split and each share would go for N1.50, with 14 billion shares. Wetin happen? Why small company like that go carry that kain load?

I'd rather go and buy Dunlop...

As for the debenture:

The interest rate on the Debenture offered shall be floating. The rate shall be 2% per annum above the average annual Monetary Policy Rate “MPR” of the Central Bank of Nigeria, which is currently 9.75% per annum to give an initial coupon rate of 11.75% per annum subject to a minimum coupon rate of 10.5% per annum and a maximum of 12.5% per annum during the life of the Stock

Why would I go and dip my head into that when market rates are over 13% and are secured? That cap rate of 12.5% is killing.

The institutional investors are looking for mugu's to offload on. I will not touch this offer with a long pole.

[BLUEMONEY]

Originally Posted by knightofdelta

I cannot waste my time on this PP. Forecasted results show PEs of 33, 19 and 13 respectively for 2009, 2010 and 2011. This is based on 7 billion ordinary shares. Then they are also floating an irredeemable and convertible debenture that has the potentials to dilute the existing number of shares further. Plus they have not even applied to SEC for listing on NSE. Obviously, some of the shares they are offering are more or less offer for sales.

The shares are offered at N1 per share and if SEC rules are followed, there will be a split and each share would go for N1.50, with 14 billion shares. Wetin happen? Why small company like that go carry that kain load?

I'd rather go and buy Dunlop...

As for the debenture:

Why would I go and dip my head into that when market rates are over 13% and are secured? That cap rate of 12.5% is killing.

The institutional investors are looking for mugu's to offload on. I will not touch this offer with a long pole.

I Thought as much without even seeing the Memo that the Insurance Companies that Earlier invested in this company are looking for Scape Goats. The most Shocking part of the Memo is the Forecasted Results that Shows PEs that is still Double Digits.