Stockbrokers applaud First Inland BankAfÆ'AtaETMAfaE A¢a,¬a,,¢AfÆ'A¢a,¬Å¡AfaEsA,A¢AfÆ'AtaETMAfaEsA,A¢Af

Stockbrokers applaud First Inland BankAfÆ'AtaETMAfaE A¢a,¬a,,¢AfÆ'A¢a,¬Å¡AfaEsA,A¢AfÆ'AtaETMAfaEsA,A¢Af

January 09, 2008/Vanguard

 

President, Chartered Institute of Stock Brokers (CIS), Mr Oladipo Aina, has said that First Inland Bank’s offer price of N9.50k represents a great value for any investor who wants to invest in a bank stock.

 

Mr. Aina stated this on Tuesday  in Lagos during an investors’ forum organized for stock brokers and Issuing Houses by First Inland Bank Plc. “Nobody can fault the offer price of N9.50k per share for a bank now.

 

The future which First Inland Bank is inviting us to share in starts today. I know my colleagues are quite excited about the offer and I am confident that we shall do our part to make the offer a success,†he said.

 

Elizabeth Ebi, GMD of Future View Financial Services also urged investors to embrace the offer in view of its potential.

 

“This is about the only bank offer in the market that is still in a single digit prize. As you are well aware, there is no offer in the market today that has this level of buy-in. Every offer in the market is double digit. When I look at the bank’s deposit base, the gross earnings and the returns on investment, I can’t but urge investors that the time to buy into this offer is rightâ€ÂÂÂÂÂ, the financial analyst said.

 

In his presentation to the investors, Mr. Okey Nwosu, MD/CEO of First Inland bank called on investors to share in the future of First Inland bank saying  “Our share price have been moving up since December 2006 and we have had an appreciation of over 250per cent until the technical suspension of the share priceâ€ÂÂÂÂÂ.

 

The share price of First inland bank rose from N3 in January 2007 to N13.30 before the suspension of the share price preparatory to the public offer.

 

He noted that First Inland Bank has between 2006 and 2007 grown its total deposit by 138%, total assets by 99per cent and gross earnings by 822per cent .

 

According to Mr. Nwosu, the bank’s gross earnings grew from N6billion in 2006 to N27billion in 2007 while profit after tax also grew from a loss position of N10billion in 2006 to a profit position of N6.4billion in 2007.

 

On the balance sheet trend of the bank, he said it has grown to over N270 billion in April 2007 whilst deposit liability grew to over N140 billion over the same period.

 

First Inland Bank is offering 5,000,000,000 ordinary shares at N9.50 per share by way of public subscription, 968,500,000 ordinary shares at N8.50 per share by way of Rights Issue while 4,000,000,000 preference shares at N9.50k per share is being offered at a coupon of 9.25 per cent annum.

 

The total amount expected to be raised in offer is about N100 billion. According Mr. Nwosu, 80% of the amount has already been underwritten on firm basis by a consortium of Issuing Houses and Underwriters.

 

He noted that 17.86per cent of the amount to be raised will be applied to Information technology upgrade, 26.90per cent for branch expansion, and 16.18per cent for development of subsidiaries; both local and international while 39.06per cent will be deployed as additional working capital.

 

At N9.50k, the offer represents a 29 per cent  discount on current market price of N13.30. Mr. Nwosu said that with 268.4 per cent price appreciation from January to date, those who invested N1million in First Inland bank within the same period would have generated N2.68million as at today’s price of N13.30 per share.



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