August 30, 2007/ Punch



Investors are to buy the forthcoming public offering of First City Monument Bank Plc at N14 per share, sources have said.


They told our correspondent on Wednesday that the bank in its application to the Nigerian Stock Exchange, fixed the offer price at N14 and the volume at 3,162,500,000 shares of 50 each.


This implies that the FCMB will be raising about N45bn from the offer. Following the application, the NSE has placed the shares of the bank on technical suspension at N17.80 per share.


The last public offering by FCMB in 2005 was done at N4 per share. The financial institution then raised about N16bn.


Meanwhile, the bank has announced a gross earning of N24.67bn for the year ended April 30, 2007, showing an increase of 126 per cent above the N10.8bn recorded in 2006. Profit before tax rose from N3.6bn to N7.569bn while profit after tax went up by 109 per cent, from N2.83bn to N5.94bn


The bank’s total balance sheet size equally grew by 148 per cent from N106.6bn to N262.84bn base on the performance. The directors have recommended a dividend of N3.3bn, which translates into 35 kobo per share.


A statement from the bank on Wednesday said that the impressive result further solidified its reputation as a reliable investment that had consistently surpassed forecasts and analysts’ expectations.


“Earnings per share at 63kobo is 56 per cent above 41kobo forecasted for 2007 during the last public offering, while dividend per share at 35kobo is 75 per cent higher than the bank’s forecast (20kobo) to the shareholders as contained in the 2004 offer document to subscribers,” the statement said.


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