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Scramble for Afribankââââ‚


December 08, 2007/ThisDay


The group managing director of Afribank Nigeria Plc, Mr. Sebastian Adigwe, yesterday said the bank would not extend its ongoing public offer of N100 billion.


The decision not to extend the offer, he told THISDAY last night in Lagos, stemmed from the huge patronage the offer has received from the investing public. Specifically, he said investors have shown an unusual enthusiasm to invest in the ongoing public offer of the bank.


“We have been in constant touch with the issuing houses and stockbrokers and the feedback we got has been extremely positive. The investing public is very responsive to the offer. In fact, they have been scrambling for the offer and from the information we have, we feel the offer has been very successful so there is no need to extend the offer,” he said.


The public offer, which opened November 1, closes on Monday, December 10.

Adigwe, who attributed the recent stellar performance of the bank to the massive support received for the ongoing public offer, assured prospective and old investors of good returns on their investment.


The bank had recently declared N8.10 billion as profit before tax for its half-year result, as against N2.83 billion in the corresponding period in 2006. This has placed the bank on an optimistic note towards surpassing its public offer projections.


Market analysts believe that if Afribank can sustain its growth, it would record at least N16 billion profit before tax by the end of its current financial year ending 31st March 2008. This is over 33 per cent above the projected forecast of N12.07 billion. They also hold the view that going by the friendly reward system of the bank, shareholders should be expecting above offer projections returns on their investment.


Adigwe explained that “since Afribank has maintained the tempo of the second quarter, investors should expect improved performance for the third quarter.”


The Afribank boss confirmed that high net worth, medium and small investors have continued to besiege the offices of the bank’s stockbrokers, portfolio managers, investment analysts and other receiving agents for the offer to make last minute purchases.


The public offer sells for N25.00 per share, which is about a 20 per cent discount from the pegged price of N30.49 on the Nigerian Stock Exchange.


Afribank has since November 10, 2007 been presenting its huge potentials and impressive bottomline that make its public offer a sound investment decision. Market and investment analysts have variously rated the Afribank public offer high and recommended it to the investing public.


They maintain that its growth potentials and rewarding prospects are very huge.


Prominent industrialists, institutional investors and shareholders Associations have also endorsed the public offer and encouraged their members to strengthen their position in the bank by increasing their stake.


Some of the investment information which makes Afribank public offer come highly recommended include the ability of the Bank to sustain its present growth rate, which has placed it among the fastest growing banks in Nigeria today.

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