Intercontinental Bank targets $1 bn cap, to partner ADB, Inv


October 16, 2006/punch



Intercontinental Bank Plc, has embarked on an aggressive measure to achieve a $1bn capital base. To achieve the feat, the bank is set to hold discussions with African Development Bank and a South African financial institution, Investec, for possible partnership.

The new target is to empower it to handle big-ticket transactions which had remained the preserve of big international financial institutions.

The bank’s Vice-Chairman and Chief Executive Officer, Mr. Erastus Akingbola, who gave the hint at an Investors’ Forum for the bank’s public offer in Enugu on Saturday, said Intercontinental Bank intends to pursue this dream (increased capitalisation) aggressively after the current public offer.

He said the bank intend to deploy the N47.65bn net proceeds from the offer on branch development and information, communication technology and e-channel development.

According to him, N4bn would be spent on branch development, N16bn on IT and N27.65bn as working capital.

Akingbola described the offer as an integral aspect of the new phase of growth the bank has entered on the conclusion of its pace-setting merger, adding that the bank would soon expand its network branches in Enugu from three to six, and it would set up country offices in Europe and United States.

He said, “Our current performance indices give us every reason to believe that we are on course in our quest to build a stock that would be the Microsoft of Africa. Our unaudited figures for the first six months of our current financial year ended August 31, 2006 indicates a pre-tax profit of N8.1bn, almost doubling the N4.2bn we made in the corresponding period last year.

Buy these shares because I assure you that the only regret you will have is if you allow this opportunity to slip by.”

In his speech, the chairman of the occasion and Vice Chancellor, University of Nigeria, Nsukka, Prof. Chinedu Nebo, said the bank’s share price of N13.50k was good, adding that the bank had given its shareholders a leverage.

Intercontinental Bank is offering to the public Rights Issue of 1, 531, 940, 918 ordinary shares at 50 kobo and Public Offering of 740, 740, 741 of 50 kobo, both at N13.50. the offers opened on Thursday September, 28, 2006 .

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