Solid Trust floats N2b private placement

[solainvest]

SOLID Trust Savings and Loans Limited, has concluded plans to raise about two billion from its investors by way of private placement. With an offer price of N1.50 per share of 1.2 billion shares comprising one billion ordinary shares of 50 kobo each for subscription and 200,000,000 ordinary shares of 50 kobo each for sale, the company hopes to list it shares on the daily official list of the Nigerian Stock Exchange (NSE), after the private placement. The offer, which opens on July 14, 2008 is scheduled to close on August 4, 2008 with Credit Eternal Limited serving as the issuing house. Speaking at the completion board meeting of the company in Lagos recently, the Chairman, Engr. Oladipo Ashafa said that it became necessary for the company to shore up its capital base in order to cope with the challenges of the industry and achieve its objective of being the integrated mortgage solutions producer of first choice. According to him, the proceeds of the offer will be utilised to expand its brand network, upgrade and expand information communication technology infrastructure, enhance its working capital, enhance rapid and extension human capital development and research among others. In his words: "The combined net proceeds of the private placement is estimated at N1.7 billion after deducting combined costs of the offer and stamping. The company will utilise N300 million on 17.6 per cent of the proceeds for its branch network expansion, N1.28 billion or 75 per cent as working capital enhancement, N96.3 million or 5.64 per cent for its Information Technology upgrade and N28.8 million or 1.7 per cent for human capital development/research." He however added that the offer proceeds of private placement would help the company to meet the expected minimum capital requirement of about two billion naira for primary mortgage institutions being proposed by the regulatory authorities. "Solid Trust Savings and Loans Limited proactively plans to achieve the capital base by raising funds from a combination of this private placement and on their return on investment. In view of the challenges presented by the on-going reforms and the opportunities that lie ahead for the industry and operators that are able to recapitalise, we are committed to ensuring that the company takes its rightful place at the pinnacle of the Nigerian mortgage industry," he added. On its future outlook, he said that the company hopes to reposition itself so as to improve its market share, improve efficiency in asset deployment and utilisation with resulting improvements in return to shareholders. He added that the resolve to open six more branches within the next two years would assist in fostering its repositioning. A close look at the company’s financial result for the year ended 30th April 2008, showed a gross earnings of N44 million over N6.2 million in 2007 and a profit after tax of N11.5 million. The company has however proposed a dividend payment of 50 kobo at the end of its 2009 financial year

[hispy99]

Solid Trust to raise N1.7bn
By Daniel Ochefu
Published: Tuesday, 15 Jul 2008
Solid Trust Savings and Loans Limited, an affiliate of Solid Homes Limited, has opened its private placement market offer to raise N1.7bn.

The offer, which opened on Monday, is expected to close on August 4, 2008.

The company is offering a total of 1.2 billion units of shares comprising one billion ordinary shares of 50 kobo each for subscription; and 200,000,000 ordinary shares of 50 kobo each for sale by way of a private placement and Rights Issue at N1.50 per share.

Speaking at the pre-offer press briefing in Lagos on Monday, the Chairman, Solid Trust Savings and Loans, Mr. Oladipo Ashafa, said the combined net proceeds of the private placement and Rights Issue, estimated to equal N1.7bn, after deducting the combined costs of N93.6m, would be utilised to effectively grow the organisation.

He said N300m, representing 17.6 per cent of the total offer proceeds, would be used for the company’s branch network expansion, expected to be completed in two years.

He explained that N28.8m, representing 1.69 per cent of the offer, would be spent on human capital development and research; while information technology upgrade would gulp N96.2m, representing 5.6 per cent of the total offer proceeds over the next one year.

He said the sum of N1.2bn, representing 75 per cent of the proceeds, would also be set aside as working capital for the company on a continuous basis.

According to him, “With an enhanced capital base, the company will not only position itself to maximise its potential, but to also improve its market share.”

He said there would be no preferential allotment of shares as it was intended that shares would be allotted on the basis of “first-come, first-serve,” and with no provision made for the offer to be underwritten at the instance of the issuer

[tinselgroup]

Please, i will like more information on this.

[muranay@yahoo.com]

Please anybody with memorandum for this offer should upload or direct us to where hard copy can be picked up.

[fashime]

Dear All. I have a hard copy of the placement memorandum. I will scan a copy and post it up later today.

[cumana]

Hi guys,

You are doing a good job on this site. Many of us have learnt a lot by subscribing to this site.
Thanks for all the info on private placement.

[cumana]

I have been opportuned to rub minds with market players that are directly connected to this offer. I was invited for the all party meeting yesterday as a representative of one of the receiving agents. I have with mtede hardcopies of the Placement Memorandum. The soft copy is difficult to come by at the moment. If you interested, you can stop by my office at Sura Shoping complex and have a look.
From my own assessment, the offer looks good. The chairman really spent time to talk about the company from many fronts including how it started, what they are into, vision for the future etc.

[hispy99]

Originally Posted by fashime

Dear All. I have a hard copy of the placement memorandum. I will scan a copy and post it up later today.

thank u in advance

[hispy99]

Solid Trust posts N11m PBT, to raise N3bn
By Agency reporter
Published: Tuesday, 29 Jul 2008
Solid Trust Savings and Loans Limited has recorded a profit before tax of N42m for the first quarter ended, April 2008.

Its gross earnings also grew from N6.2m in 2007 to N44m at the end of the first quarter in 2008.

The Company is also accessing the capital market to raise the sum of N1.7bn by way of private placement.

The offer, which opened on the July 22, 2008, is expected to close on August 18, 2008.

The company is offering 1,200,000,000 stocks comprising 1,000,000,000 ordinary shares of 50 kobo each for subscription, and 200,000,000 ordinary shares of 50 kobo each for sale at N1.50 per share.

With a current market capitalisation of N1, 500,000 at offer price, Solid Trust is expecting a gross placement proceeds of N1.8bn from the offer.

A statement from the company on Monday quoted the Chairman, Mr. Oladipo Ashafa, as saying, “The net proceeds of the offer would be used for branch network expansion, human capital development and research, information technology upgrade and working capital.”

[hispy99]

Chairman of Solid Trust Savings and Loans Limited, Engr. Oladipo Ashafa, has disclosed the company’s plans to list its shares on the trading floor of the Nigerian Stock Exchange (NSE) at the conclusion of its ongoing private placement.

The chairman, who made this known in a chat with newsmen in Lagos, said the primary mortgage institution was undertaking the private placement to enhance its capital base in order to maximise the potentials in the nation’s mortgage business.

He said: “With an enhanced capital, Solid Trust Savings & Loans Limited, an affiliate of Solid Homes will be able to complement and participate in our various projects and meet prospective buyer’s demand for mortgages.
“We will also deepen management skills, raise staff competences to world class standard through training programmes.”

Ashafa added that local and foreign investors have continued “to invest massively in the private placement, which opened two weeks ago.”
Chief Operating Officer, CreditEterna, the issuing house to the offer, Mr. Dotun Onipede, noted that responses from the investing public have been massive, stressing that the development was an endorsement of the performance and growth plans of the company.

According to Onipede, the company has been able to cut a niche for itself in the industry in terms of meeting and surpassing stakeholders’ expectations over the years, adding that the present search for additional funds was to make it keep maintaining industry leadership.

While calling on the investing public to buy into the company, he assured that the firm would stick to its planned date to list on the Exchange.
Only recently, major shareholders’ groups in the country endorsed the placement, expressing absolute confidence on the company’s management to deliver on its targets.

According to the National Coordinator, Corporate Investors of Nigeria , Mr. Taiwo Oderinde, Solid Trust Savings & Loans Limited, an affiliate of Solid Homes Limited has a pedigree of performance and meeting investors’ expectations.

He said that additional funds would enable the company achieve its business objectives and that of the stakeholders.

Solid Trust Savings & Loans Limited, is presently in the market to raise N1.8 billion by way of a private placement. The offer closes on August 18 with the unit share price put at N1.50.

[muranay@yahoo.com]

Originally Posted by fashime

Dear All. I have a hard copy of the placement memorandum. I will scan a copy and post it up later today.

Fashime,

Please upload the memorandum as you have promised.

What is the minmum unit, dividen amount and years?

When do they intend to list on NSE?

[gafunk]

Kindly upload the memo for the benefit of the forum members.