Spring Capital

[hispy99]

Spring Capital to raise N4.5b from the Exchange
By Femi Adekoya

TO further boost its operations, beef up its shareholders' fund and enhance shareholders' value, Spring Capital Marker Limited has concluded plans to raise N4.5 billion from the capital market.

The additional capital, which will be raised through hybrid offers, will also be used to strengthen its retail services and deepen its underwriting businesses.

Making this known to journalists in Lagos recently, the Managing Director of the company, Mr. Chris Oshiafi, said the company plans to raise N4.5 billion through hybrid offers to selected private investors.

He stated that the initial funds raising exercise is part of its strategies aimed at positioning the company among the league of top four investment banking firms in Nigeria by 2012.

The company, he added, is also planning to have strong presence in emerging markets in Africa over the next four years and subsidiaries (Spring Capital Partners Limited) in Europe and United States of America; to harness funding possibilities through the issuance of esoteric products to an ever expanding market internationally and will also create a specialised platform for private equity investments in Nigeria with a view to assisting the government in financing its seven-point agenda. _

"Spring Capital Markets Limited is a subsidiary of Spring Bank Plc with an authorised share capital of N2 billion. It is a holding company with diverse interests in stockbroking, registrar services & venture capital funds management," he said

A look at the company's audited financial report for the year ended April 2007, showed that its group profit before tax closed at N125 million from N26 million, while its un-audited profit for the year ended April 30,2008 showed a profit before tax of N907 million.

Speaking on the reason why the company is undertaking the financial raising exercise, he explained that the company had taken to the option in order to enhance its business and its repositioning exercise, especially at a time the company has over N40 billion in assets.

According to him: "Prior to the banking sector's consolidation, discerning managers of old generation banks knew quite well that in competing for the future, their real competitors are not those they started business with 60-70 years ago but the focused and committed upstarts who are revolutionising the industry and setting new standards. They acknowledged that the future may after all not be shaped by their resource endowment and incumbency factors but the resourcefulness of new entrants/competitors may just be the deciding factors.

Despite its two years of existence and activities in the nation's investment banking terrain, the company has featured prominently in more than 20 funds raising mandates in both primary and secondary markets, while it is currently involved in the on-going funds raising activities of National Sports Lottery Plc and Nestoil Limited", he added.

[cumana]

Please, is the offer ongoing? If yes, can someone post the memorandum for the offer?

Cheers.