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First Inland Bank N100bn offer opens

Category: Public Offers Private Placements


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First Inland Bank N100bn offer opens

Subscription lists to First Inland Bank’s N100bn hybrid offer will open on today, Friday January 4, 2007, as the bank attempts to boost its capital base above the $1bn (N130bn) mark in a major repositioning effort to enable it take advantage of increasing business opportunities.

 

The fresh capital, to be raised from a combination of public offer, rights issue and issuance of irredeemable non-cumulative preference shares, will be used to implement the bank’s growth strategy, top officials said.

 

First Inland Bank, which concluded its completion board meeting in Lagos on Friday, is offering to the general public five billion ordinary shares of 50 kobo each at N9.50 per share, four billion irredeemable non-cumulative preference shares of 50 kobo each at N9.50 and rights issue of 968,863,000 ordinary shares of 50 kobo each at N8.50 per share.

 

According to the Head, Corporate Affairs Department of the bank, Mr. Barnabas Eke, the opening offer will begin officially in Lagos and Abuja on Friday concurrently.

 

He said road shows to mark the official take-off will be done concurrently in Lagos and Abuja.

 

The offer is expected to close on January 31, 2008, but there are provisions for the absorption of some level of over-subscription if this occurs, according to the prospectus.

 

The offer is coming at a discounted price of N3.80 for rights issue, and N4.80 for public offer. The NSE froze the bank’s share price at N13.30 after its official applied to raise the fresh funds

 

According to the prospectus, “In the event of oversubscription, the shares shall be allotted to shareholders in an amount not exceeding the bank’s un-issued share capital, subject to the approval of the bank’s board of directors and the regulatory absorption limit of 25 per cent of the oversubscription. The supplementary proceed will be utilised for the same purpose.”

 

Executive Director, Skye Bank Plc, Mr. Segun Oloketuyi, who spoke on behalf of the joint issuing houses at the completion board meeting, said the offer would be over-subscribed.

 

He said, “We are delighted and privileged to be part of this offer. Given the tremendous improvement in First Inland Bank’s performance coupled with its unique product offering, we have no doubt that we will be supporting an offer that will do well.

 

“Besides, the price is quite competitive. For a bank in Nigeria to offer its shares at N8.50 (rights issue) and N9.50 (public offer), this is a givea-way price. I will implore you all to subscribe to this offer because the sky is the limit of First Inland Bank,” he stressed.

 

First Vice-Chairman, Ibadan Zone Shareholders’ Association, Aderemi Oyepeju, said, “I have no doubt in my mind that the offer of First Inland Bank will be oversubscribed because the bank has got all it takes to be a dominant player in Nigeria’s financial services industry.

 

“The entire shareholder heads will work day and night to ensure that the offer is oversubscribed.”

 

First Inland Bank has played a leading role in a substantial number of transactions in telecommunications, oil and gas, hospitality and infrastructures development through its thriving partnership with top foreign and local financial institutions.

 

The bank had, among others, secured a 100 per cent increase in its line of credit from the Africa Export-Import, based in Cairo Egypt. This points to the increasing confidence in the bank by the foreign institutions.

 

First Inland Bank continues to create more capacity efforts towards strengthening its offshore funding base with a host of other multilateral financial institutions.

 

The bank is strongly committed to the development of the Nigerian financial markets by accessing offshore lines of credit and making such available to its valued customers. - Punch



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