FinBank delays listing of 2008 offer despite SEC's

FinBank delays listing of 2008 offer despite SEC's


Proshare NI

February 18, 2009 at 17:06 GMT



First Inland Bank Plc (FinBank) has delayed on listing its January 2008 hybrid offer about eight months after Apex Capital Market Regulatory Institution; Securities and Exchange Commission (SEC) cleared the offer.


Prior to this time, investors had inundated the mail box of Proshare NI on the issue of dispatch of share certificates. A good number of them expressed disappointed that close to one year, the Bank has not dispatched the share certificates of those who took part in their January 2008 hybrid offer.


After several delays, it was sometimes in early October 2008 that a Source at First Inland Registrars Limited affirmed to Proshare NI that the Registrar have begun the dispatch of share certificates to investors who bought between 1,000 and one million units of the hybrid offer.


As earlier reported by Proshare NI, another Source at First Inland Registrars had affirmed that by the end of July 2008, the company will commence the dispatch of share certificates to investors. This Proshare NI observed did not happen.


However, regulations stipulates that companies are supposed to start the dispatch of share certificates to investors not later than 15 working days from the day of the clearance of the allotment by SEC; thereafter apply to the Nigerian Stock Exchange (NSE) to list such shares.


From Proshare’s investigations, the Commission cleared the hybrid offer on June 18 2008 and cleared the supplementary and additional allotment on September 15 2008 respectively.


Proshare NI sought to clarify the issue of the Bank not listing its shares after about eight months SEC has cleared the hybrid offer.


Idowu Bello, Managing Director (MD) of First Inland Registrars affirmed to Proshare NI that the Bank is in the process of listing the shares on the Floors of the Stock Exchange.


He however, declined to confirm the time, everything depends on the NSE, and it is when they give their approval that FinBank would list those shares he said.


Proshare NI made efforts on phone to contact Sola Oni of the Corporate Affairs of the NSE and now of the IT department, who declined to comment on the issue; due to the fact that he travelled out of Lagos. I am not currently in Lagos and would get back to you when I return he said.


Again, as at the time of filling in this report, Proshare NI made efforts also to contact on phone Ekuma Eze,  Group Head, Media & External Relations of the Bank; but this was abortive as he declined picking the call.


FinBank had earlier reported a 185.10 percent subscription for the 5.0 billion Ordinary Shares it offered for sale during its January 2008 offer. But this was contrary to the subscription level on the schedule of Securities Allotment cleared January 2008 by SEC; which shows 0.00% level of subscription of the January 2008 FinBank hybrid offer.


Apart from this, the Bank is among some of the quoted firms on the Floors of the Stock Exchange that has gone against regulatory rules, it last declared results in year 2007.


FinBank in January, 2008, sought to raise fresh funds of N85.5 billion when it offered to investors by way of subscription 5.0 billion ordinary shares of 50 Kobo each and 4.0 billion Irredeemable Non-Cumulative Convertible Preference shares of 50 Kobo each at N9.50 Kobo respectively.


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