Fidelity Union to Raise N3.6bn

[threecrown]

Fidelity Union Securities Limited is to raise N3.6 billion from rights issue and private placement with a view to increasing its shareholders? fund to N5 billion.

The company's shareholders' fund currently stands at N1.138 billion.

Chairman of the company, Mr. Reginald Ihejiahi, who disclosed this in Lagos yesterday at an Extra ordinary General Meeting (EGM), said the proposed capital issue would guarantee growth and preservation of shareholders? investment.

Ihejiahi said a total of 903.7 million ordinary shares of 50 kobo each would be offered to the existing shareholders by way of rights at N2 per share, while 900 million ordinary shares of 50 kobo each would be sold by way of private placement at N2.10.

"51 per cent of the private placement will be allotted to the bank while the balance representing 11 per cent of the post issue capital will be offered to a select number of key shareholders of the bank, and staff of the company.

"This will further broaden shareholding while retaining our private company status. It is proposed that the issue open early in July and close in August to meet our compliance and filing requirements", he said.

The chairman said the company posted N732 million profit in 2007 as against N48 million profit in 2002. Besides, he said gross income increased from N91 million in 2002 to N1.2 billion in 2007.

The directors of the company approved a special bonus for the shareholders in addition to approving the change of the company's financial year end from June 30 to December 31 as directed by the apex bank.

The Managing Director of FUSL, Mr. Frank Onwu, explained that the capital raising exercise would enable the company to significantly grow its trading and underwriting businesses.

He said once regulatory approval was obtained, the rights issue and the private placement exercise would kick off to enable the company raise its capital base to a level that could support its volume of business.

On the downward trend of activities in the stock market, Onwu described the situation as temporary, saying now is the best time for people with liquidity to buy shares and grow their portfolio.

Onwu said economic forecasts had revealed that the national economy would significantly grow in the next five years, noting that the capital market would grow in tandem.

[tonidol]

Originally Posted by threecrown

Fidelity Union Securities Limited is to raise N3.6 billion from rights issue and private placement with a view to increasing its shareholders? fund to N5 billion.

The company's shareholders' fund currently stands at N1.138 billion.

Chairman of the company, Mr. Reginald Ihejiahi, who disclosed this in Lagos yesterday at an Extra ordinary General Meeting (EGM), said the proposed capital issue would guarantee growth and preservation of shareholders? investment.

Ihejiahi said a total of 903.7 million ordinary shares of 50 kobo each would be offered to the existing shareholders by way of rights at N2 per share, while 900 million ordinary shares of 50 kobo each would be sold by way of private placement at N2.10.

"51 per cent of the private placement will be allotted to the bank while the balance representing 11 per cent of the post issue capital will be offered to a select number of key shareholders of the bank, and staff of the company.

"This will further broaden shareholding while retaining our private company status. It is proposed that the issue open early in July and close in August to meet our compliance and filing requirements", he said.

The chairman said the company posted N732 million profit in 2007 as against N48 million profit in 2002. Besides, he said gross income increased from N91 million in 2002 to N1.2 billion in 2007.

The directors of the company approved a special bonus for the shareholders in addition to approving the change of the company's financial year end from June 30 to December 31 as directed by the apex bank.

The Managing Director of FUSL, Mr. Frank Onwu, explained that the capital raising exercise would enable the company to significantly grow its trading and underwriting businesses.

He said once regulatory approval was obtained, the rights issue and the private placement exercise would kick off to enable the company raise its capital base to a level that could support its volume of business.

On the downward trend of activities in the stock market, Onwu described the situation as temporary, saying now is the best time for people with liquidity to buy shares and grow their portfolio.

Onwu said economic forecasts had revealed that the national economy would significantly grow in the next five years, noting that the capital market would grow in tandem.

What do we stand to gain from this investment? Will they succeed in listing going by Madam's continuos rant that Brokers cannot list? Or are they doing more than stockbroking?

[threecrown]

Originally Posted by tonidol

What do we stand to gain from this investment? Will they succeed in listing going by Madam's continuos rant that Brokers cannot list? Or are they doing more than stockbroking?

I dont think they will be listing according to this statement:"This will further broaden shareholding while retaining our private company status".
But who knows if Madam's continuous rant that brokers cannot list will change in some months to come by the powers that be.

[waaan5]

listing or not, pls let have the pp memo when it is out so members can analyze.

[BLUEMONEY]

Originally Posted by threecrown

I dont think they will be listing according to this statement:"This will further broaden shareholding while retaining our private company status".
But who knows if Madam's continuous rant that brokers cannot list will change in some months to come by the powers that be.

i dont think there will be a going back on the decision to list a stockbroking firm. so those that would come out for PP, should not be looking for 1 billion naira but much more so as to diversify to other business ventures.
no foward looking stockbroking firm should be comfortable with the 1 billion naira benchmark.

[hispy99]

From the quote below, it seems as if the PP is only for the bank, key shareholders of the bank and staff of FUSL.

"51 per cent of the private placement will be allotted to the bank while the balance representing 11 per cent of the post issue capital will be offered to a select number of key shareholders of the bank, and staff of the company.

[threecrown]

Originally Posted by hispy99

From the quote below, it seems as if the PP is only for the bank, key shareholders of the bank and staff of FUSL.

"51 per cent of the private placement will be allotted to the bank while the balance representing 11 per cent of the post issue capital will be offered to a select number of key shareholders of the bank, and staff of the company.

FUSL are my stockbroker, i will get more information about this for the house.

But if 51% and 11% of 900million shares of the private placement goes to the bank, key sharehlders of the bank and staff of the company then the remaining 38% shoud up for grabs.

They also have a good result "the company posted N732 million profit in 2007 as against N48 million profit in 2002, gross income increased from N91 million in 2002 to N1.2 billion in 2007".

[hispy99]

Originally Posted by threecrown

FUSL are my stockbroker, i will get more information about this for the house.

But if 51% and 11% of 900million shares of the private placement goes to the bank, key sharehlders of the bank and staff of the company then the remaining 38% shoud up for grabs.
They also have a good result "the company posted N732 million profit in 2007 as against N48 million profit in 2002, gross income increased from N91 million in 2002 to N1.2 billion in 2007".

Read the statement again. There is no 38% up for grabs from the quote. The 11% they are refering to is not 11% of the PP offer, but 11% of the post issue capital of FUSL.


"while the balance representing 11 per cent of the post issue capital will be offered to a select number of key shareholders of the bank, and staff of the company"

[azob2002]

The fact is that FUSL is a well funded stockbroking firm with clear affiliation to Fidelity bank Plc. As a staff of the bank, i can assure you all that the P.P is only for a select few (Staff and core investors/share holders).

However we beleive that a few of our customers with good accounts would be invited to take part.

Just keep ur eyes open

[waaan5]

Why are we then discussing a 'closed' offer here?

[hispy99]

Originally Posted by azob2002

The fact is that FUSL is a well funded stockbroking firm with clear affiliation to Fidelity bank Plc. As a staff of the bank, i can assure you all that the P.P is only for a select few (Staff and core investors/share holders).

However we beleive that a few of our customers with good accounts would be invited to take part.

Just keep ur eyes open

oya, my eyes are wide open...send me the application form sharp sharp

[juli-9]

pls i beg everyone of you to help me out, a friend came to me with geofield pp form for me to buy @#5.my problem is that i dont know how much it will be listed! . though he said it will be list in the next 3months the money is not mine but it will be with me till dec thanks.

[fredski]

Originally Posted by juli-9

pls i beg everyone of you to help me out, a friend came to me with geofield pp form for me to buy @#5.my problem is that i dont know how much it will be listed! . though he said it will be list in the next 3months the money is not mine but it will be with me till dec thanks.

If geofluid is what your on about, there is a thread for this under PP.

On your predicament, thats a decision you need to make your self however should they list 90days from end of PP (all things being equal), there is no guarantee you would have your certificate at that day or there would be a huge price rise at listing (on the other hand it just might go through the roof and some miracle of a chance you have your certificate verified and ready to transact). hmmmmm

But like I said,..... Up to you.

But I feel your a little late for this PP.... Closed on the 20th of June

[Apache]

Originally Posted by juli-9

pls i beg everyone of you to help me out, a friend came to me with geofield pp form for me to buy @#5.my problem is that i dont know how much it will be listed! . though he said it will be list in the next 3months the money is not mine but it will be with me till dec thanks.

Hello Juli-9,

Since you are still online, look for the geo fluid PP thread in the private placement forum. Read through every page and you should be able to make a decision.
welcome to the forum

[tonidol]

Originally Posted by juli-9

pls i beg everyone of you to help me out, a friend came to me with geofield pp form for me to buy @#5.my problem is that i dont know how much it will be listed! . though he said it will be list in the next 3months the money is not mine but it will be with me till dec thanks.

Simply don't invest money put in your care for just 6months into PP. You may regret it if d Owner of d money comes calling and will not listen to stories and l don't expect d Owner to accept stories. it is an integrity issue.

I don't know how much you have but someone posted on BankPHB thread that d Bank is presently giving 18% returns for 90 days fix with them. You may need to clarify this.

You fit make some money cos 90days go be 90days with a solid bank. PP no get defined pattern in terms of timing

[azob2002]

Originally Posted by tonidol

Simply don't