Afribank applies to raise N120bn


August 16, 2007/Punch




The Nigerian Stock Exchange has placed the shares of Afribank Nigeria Plc on technical suspension following an application by the bank to raise about N120bn from the capital market.


The price freeze opening date is yet to be made public.


However, our correspondent learnt that the bank had applied to issue about 4.8billion ordinary shares of 50 kobo each at N25 per share for public subscription. Afribank had last year applied to raise additional funds. Consequently, its price was first frozen at N11.51.


But the price initial technical suspension was lifted when the bank withdrew the first application. The high demand, coupled with the impressive results of the year ended March 31, 2007, drove the share price from N11.51 to the current N36.89, translating into a capital growth of 221 per cent within one month.


Afribank recorded profit before taxation of N9.13bn and recommended a bonus of one for five ordinary shares of the bank held and a cash dividend of 30kobo per share.


The bank’s Head of Corporate Affairs,, Mr. Lanre Alabi, had explained that the performance of the bank had placed it among the league of top banks in

Nigeria with strong fundamentals, robust prospects and a brighter future.


“At the core of this transformation is a drive by the new management to improve it’s level of efficiency, create a sound asset mix, create a professional environment with strong corporate values and compete aggressively for business in the financial market place,” he said.


According to him, Afribank was on the path of market dominance and sustainable growth with capability to convert local and global challenges into opportunities.

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