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Investor activity lends support for the Afribank offer


November 29, 2007/Punch


Strong fundamentals and sound business operational plan appear to be the pull driving investors to Afribank’s ongoing public offer. Investment statistics of the bank, according to analysts, are above industry average.


Portfolio analysts hold the view that apart from the current attractive information on the bank, the application of the offer proceeds of N94.1bn (after offer and underwriting expense) is attractive to investors,” a statement from the bank on Wednesday said.


The bank explained that the offer was to raise N100bn to fund various initiatives which were designed to support its growth objectives within Nigeria and globally.


 The statement listed the bank’s strong fundamentals as management, revenue and profitability; return on equity; cash flow; and stock performance.


“Afribank operates under a group structure managed by a 10-man board of directors, comprising of professionals and distinguished businessmen with varied backgrounds applicable to the businesses they have under management.


It stated that revenue for the financial year ending March 31, 2007, increased by $11.9bn, or 76 per cent relative to the prior like period. Comparatively, PBT increased by N3.38bn, or 86.7 per cent relative to the prior fiscal year.


The Return On Equity for Afribank Bank Plc, based on the most recent fiscal year’s financial statements is 16.5 per cent, which is above the industry average of 15 per cent.


The current year’s ROE represents an improvement of 80.1 per cent compared to 9.02 per cent, the ROE for the prior year. A review of the most recent three financial statements indicates a bank with improving operating and free cash flow position since the FYE March 2005, the statement added

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