Clear facts have indicated that Access Bank Plc plans to raise about N70.343bn from the capital market through public offering of 4.721billion ordinary shares of 50 kobo at N14.90 per share.
The bank in May applied and received the approval of the Nigerian Stock Exchange for the offer. The offer is coming at a discounted value of N4.42, as the stock of the bank is under technical suspension at a price of N19.32.
The Group Managing Director of the bank, Mr. Aigboje Aig – Imoukhuede, said the offer proceeds will be used to finance business growth and branch expansion locally and offshore; boost the capital base of the bank. He added that the bank would invest heavily in information technology and increase its working capital in order to position it for the emerging opportunities in the global financial space.
The bank opened this year at N7.00 and has appreciated by over 160% this year.The bank also has alliances with international financial institutions, which in turn have contributed to the profitability of the bank. The banks retail banking product tagged “EMPOWER” has also helped the bank in reaching out to a wider coverage of customers.
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Tuesday, June 12, 2007
Tuesday, June 5, 2007
Return prospects in FBN N100bn offer
Business summary and analysis First Bank of Nigeria Plc was incorporated in Nigeria as a private limited liability company in 1969 after commencing operations in 1894 as a branch of Bank of British West African Limited.
The bank was converted to a publicly quoted company in 1970 and quoted on Nigerian Stock Exchange in 1979. The bank has grown consistently since inception to become the biggest bank in Nigeria with current Market Capitalisation of N=418.53 billion as at May 11, 2007.
The bank is wholly owned by Nigerian Citizens, and Associates. As at 31st March 2006, the bank has eight subsidiaries, one Associate and four affiliate companies. These are:
Subsidiaries
•
FBN Bank (UK) Limited established to meet the banking requirements of Nigerian business men and high-net-worth individuals in London.
•
FBN Insurance Brokers Limited which transacts all classes of Insurance brokerage businesses
•
FBN Mortgage Limited which is the Mortgage Finance outfit to improve the access to home ownership by majority of Nigerians
•
First Funds Limited established to manage FBN group Small and Medium Enterprises Equity Investment.
•
First Trustees Nigeria Limited which provides financial services solution involved in Custodial Services, Property Management Trust, and Equity Management Services.
•
FBN Capital Limited established to carry out Corporate Finance, Wealth Management and Capital Market functions of the bank.
•
FBN Registrar Nigeria Limited which offers share Registrar and Administration Services
•
First Pension Custodian Nigeria Limited which was established to carry out the business of Pension Fund Custody.
Associate
The bank has Kakawa Discount House as its only Associated Company.
The quarterly results of the bank have been very impressive. (see Table ll) The nine months result shows an increase of 27.68% and 26.67% in Gross Earnings and PAT respectively. This performance if continue in the last quarters will translate into better return on investment in terms of dividends and capital appreciation.3. Affiliate Companies
•
Banque Internationale du Benin
•
Value card
•
Afrexim Bank
•
Nigerian Interbank Settlement System
These subsidiaries and affiliates have turned the bank to a full fledged financial supermarket where all financial services are provided for its customers.
Board of directors
Names Designation
Mutallab, U. Abdul, CON Chairman, Ajeigbe, Jacob Moyo MD/CEO, Aboh, John Oche Director, Adesola, Harriet-Ann O Director, Afonja Ajibola A. Director, Babalola Aderemi W., Director, Ayoola O. Otudeko Director , Duba, Garba Director
Hassan-Odukale, Oyekanmi, Director, Ibrahim Muhammadu Director, Sanusi L.Sanusi Director, Mahmoud Abdullahi Director, Alex C. Otti, Director, Udo Udu-Aka, Director, Oladele O.Oyelola Director
Services
The main business of the bank is commercial banking services which includes: Savings Account, Current Account, Loans and Overdrafts and International banking services. Whilst the bank provides traditional banking services, its subsidiaries provides a wide range of products services as stated above. These services are delivered through its 394 branches strategically located all over the country.
Business analysis and financial summary
The bank has demonstrated a consistent growth pattern in all its balance sheet figures in the last five years.
The Total Assets grew by 111.5% from N290.5 billion in 2002 to N614.8 billion in 2006. The total deposit also grew by 154.19% from N176.6 billion in 2002 to N448.9 billion in 2006. The Loan Portfolio of the bank increased from N66.38 billion in 2002 to N177.30 billion in 2006.The shareholders' funds also increased in this magnitude by 222.34% from N19.3 billion in 2002 to N62.3 billion in 2006. The bank's performing loan was 99.71% and 95.63% in 2006 and 2005 respectively.(see table lV)
The Gross Earnings and PAT increased consistently from N46 billion and N6.1 billion in 2002 to N67.4 billion and N17.4 billion in 2006 representing 45.76% and 263.97% respectively.
The growth can be attributed to very good customer service delivery system complimented by high window network servers that make service delivery excellent.
The performance indices of the bank fluctuated during the period under review. (see Table lV) Profit margin shows consistence increase over the five year period. Return on Equity increased from 2002 to 2003 and fell in 2004 and 2005 before it increased in 2006. The Capital Adequacy of the bank measured by ratio of Shareholders' Fund to Total Assets and to Loan and Advances increased from 2002 to 2004, fell in 2005 and 2006. The liquidity position of the bank measured by Loans & Advances to Total Assets and Deposits is fair with five year average percentage of 34%.
The stock market analysis though impressive, fluctuated during the period under review. EPS which was N2.35 in 2002 increased to N4.33 in 2003, but fell in 2004 to N3.28 and went up again in 2005 to N3.44 and fell again in 2006 to N3.32. The P/E Ratio followed the same pattern with five year average value of 8.51. This value is good as investors that invested in the company may recoup their investment back in eight years.
The bank consistently paid dividend throughout the five year period. The alpha value of 0.73 is positive indicating that the bank over-performed the market in the last one year while the beta value of -0.35 is negative indicating very low risk.
The total return to investors in the last five years is highly encouraging. (see Table l) The ability of the bank to consistently give bonus in the last five years shows the stock is highly rewarding.
The bank projected
•
Consistent increase in Gross Earnings in the next four years (see table lll
•
Total Assets and contingents will grow by 21%, 50%, 27%,30% in 2007, 2008, 2009, and 2010 respectively
•
The quality of the bank's management will be sustained
•
Consistent payment of dividend as stipulated in table lll above
•
The bank will continue to enjoy the goodwill and confidence of its present and potential customers,
•
The Public Offer will be oversubscribed
Analyst comments
•
The positive alpha value of 0.73 shows higher performance compared to Market performance..
•
The -0.35 Beta value shows that the risk is very low, lower than the market risk
•
The ability of the bank to meet the minimum capital base without pressure shows that the bank is sound.
•
The new offer will enable the bank to increase its financial strength which is expected to translate to better businesses and performance
•
The good quarterly results may translate to better total return to investors in the current year.
•
The modern technology, high branch network, well organised customized services are expected to improve the performance of the bank.
•
The future outlook of the bank looks brighter and there is possibility that the bank will meet the projections and even surpass them.
•
From experience, there are indications that investors will take up their Rights and also respond positively to the Public Offer.
•
If this impression comes to reality, the Offer will be successful.
•
There is possibility for post Offer Price appreciation.
Conclusion
In light of the analysis above :
•
We are of the opinion that the bank has good prospect. The possibility of full or oversubscription of the Offer is high
•
Full and Over subscription of the Offer will enable the bank to retain its position as the biggest bank in Nigeria.
•
The sound fundamentals, good capital appreciation and good return enjoyed by investors over the years may likely continue because more fund will be available to do business.
•
The going concern of the bank has not been threatened over the years, Investors will continue to enjoy security of their investment. Those investing on long term will also enjoy good share accumulation. Return on investment will improve since the bank is likely going to continue to make more income.
•
Going through the financial projections we are also of the opinion that the bank will be able to meet most of its projections which make the stock a good buy for Investment.
RECOMMENDATION
We therefore recommend that the Offer is a good buy for both long and short term Investors.
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The bank was converted to a publicly quoted company in 1970 and quoted on Nigerian Stock Exchange in 1979. The bank has grown consistently since inception to become the biggest bank in Nigeria with current Market Capitalisation of N=418.53 billion as at May 11, 2007.
The bank is wholly owned by Nigerian Citizens, and Associates. As at 31st March 2006, the bank has eight subsidiaries, one Associate and four affiliate companies. These are:
Subsidiaries
•
FBN Bank (UK) Limited established to meet the banking requirements of Nigerian business men and high-net-worth individuals in London.
•
FBN Insurance Brokers Limited which transacts all classes of Insurance brokerage businesses
•
FBN Mortgage Limited which is the Mortgage Finance outfit to improve the access to home ownership by majority of Nigerians
•
First Funds Limited established to manage FBN group Small and Medium Enterprises Equity Investment.
•
First Trustees Nigeria Limited which provides financial services solution involved in Custodial Services, Property Management Trust, and Equity Management Services.
•
FBN Capital Limited established to carry out Corporate Finance, Wealth Management and Capital Market functions of the bank.
•
FBN Registrar Nigeria Limited which offers share Registrar and Administration Services
•
First Pension Custodian Nigeria Limited which was established to carry out the business of Pension Fund Custody.
Associate
The bank has Kakawa Discount House as its only Associated Company.
The quarterly results of the bank have been very impressive. (see Table ll) The nine months result shows an increase of 27.68% and 26.67% in Gross Earnings and PAT respectively. This performance if continue in the last quarters will translate into better return on investment in terms of dividends and capital appreciation.3. Affiliate Companies
•
Banque Internationale du Benin
•
Value card
•
Afrexim Bank
•
Nigerian Interbank Settlement System
These subsidiaries and affiliates have turned the bank to a full fledged financial supermarket where all financial services are provided for its customers.
Board of directors
Names Designation
Mutallab, U. Abdul, CON Chairman, Ajeigbe, Jacob Moyo MD/CEO, Aboh, John Oche Director, Adesola, Harriet-Ann O Director, Afonja Ajibola A. Director, Babalola Aderemi W., Director, Ayoola O. Otudeko Director , Duba, Garba Director
Hassan-Odukale, Oyekanmi, Director, Ibrahim Muhammadu Director, Sanusi L.Sanusi Director, Mahmoud Abdullahi Director, Alex C. Otti, Director, Udo Udu-Aka, Director, Oladele O.Oyelola Director
Services
The main business of the bank is commercial banking services which includes: Savings Account, Current Account, Loans and Overdrafts and International banking services. Whilst the bank provides traditional banking services, its subsidiaries provides a wide range of products services as stated above. These services are delivered through its 394 branches strategically located all over the country.
Business analysis and financial summary
The bank has demonstrated a consistent growth pattern in all its balance sheet figures in the last five years.
The Total Assets grew by 111.5% from N290.5 billion in 2002 to N614.8 billion in 2006. The total deposit also grew by 154.19% from N176.6 billion in 2002 to N448.9 billion in 2006. The Loan Portfolio of the bank increased from N66.38 billion in 2002 to N177.30 billion in 2006.The shareholders' funds also increased in this magnitude by 222.34% from N19.3 billion in 2002 to N62.3 billion in 2006. The bank's performing loan was 99.71% and 95.63% in 2006 and 2005 respectively.(see table lV)
The Gross Earnings and PAT increased consistently from N46 billion and N6.1 billion in 2002 to N67.4 billion and N17.4 billion in 2006 representing 45.76% and 263.97% respectively.
The growth can be attributed to very good customer service delivery system complimented by high window network servers that make service delivery excellent.
The performance indices of the bank fluctuated during the period under review. (see Table lV) Profit margin shows consistence increase over the five year period. Return on Equity increased from 2002 to 2003 and fell in 2004 and 2005 before it increased in 2006. The Capital Adequacy of the bank measured by ratio of Shareholders' Fund to Total Assets and to Loan and Advances increased from 2002 to 2004, fell in 2005 and 2006. The liquidity position of the bank measured by Loans & Advances to Total Assets and Deposits is fair with five year average percentage of 34%.
The stock market analysis though impressive, fluctuated during the period under review. EPS which was N2.35 in 2002 increased to N4.33 in 2003, but fell in 2004 to N3.28 and went up again in 2005 to N3.44 and fell again in 2006 to N3.32. The P/E Ratio followed the same pattern with five year average value of 8.51. This value is good as investors that invested in the company may recoup their investment back in eight years.
The bank consistently paid dividend throughout the five year period. The alpha value of 0.73 is positive indicating that the bank over-performed the market in the last one year while the beta value of -0.35 is negative indicating very low risk.
The total return to investors in the last five years is highly encouraging. (see Table l) The ability of the bank to consistently give bonus in the last five years shows the stock is highly rewarding.
The bank projected
•
Consistent increase in Gross Earnings in the next four years (see table lll
•
Total Assets and contingents will grow by 21%, 50%, 27%,30% in 2007, 2008, 2009, and 2010 respectively
•
The quality of the bank's management will be sustained
•
Consistent payment of dividend as stipulated in table lll above
•
The bank will continue to enjoy the goodwill and confidence of its present and potential customers,
•
The Public Offer will be oversubscribed
Analyst comments
•
The positive alpha value of 0.73 shows higher performance compared to Market performance..
•
The -0.35 Beta value shows that the risk is very low, lower than the market risk
•
The ability of the bank to meet the minimum capital base without pressure shows that the bank is sound.
•
The new offer will enable the bank to increase its financial strength which is expected to translate to better businesses and performance
•
The good quarterly results may translate to better total return to investors in the current year.
•
The modern technology, high branch network, well organised customized services are expected to improve the performance of the bank.
•
The future outlook of the bank looks brighter and there is possibility that the bank will meet the projections and even surpass them.
•
From experience, there are indications that investors will take up their Rights and also respond positively to the Public Offer.
•
If this impression comes to reality, the Offer will be successful.
•
There is possibility for post Offer Price appreciation.
Conclusion
In light of the analysis above :
•
We are of the opinion that the bank has good prospect. The possibility of full or oversubscription of the Offer is high
•
Full and Over subscription of the Offer will enable the bank to retain its position as the biggest bank in Nigeria.
•
The sound fundamentals, good capital appreciation and good return enjoyed by investors over the years may likely continue because more fund will be available to do business.
•
The going concern of the bank has not been threatened over the years, Investors will continue to enjoy security of their investment. Those investing on long term will also enjoy good share accumulation. Return on investment will improve since the bank is likely going to continue to make more income.
•
Going through the financial projections we are also of the opinion that the bank will be able to meet most of its projections which make the stock a good buy for Investment.
RECOMMENDATION
We therefore recommend that the Offer is a good buy for both long and short term Investors.
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Once again, you are welcome to nairakobo forum..
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GTBank impresses investors with capital gain, steady growth in dividend
For dividend and capital gain –driven investors, GTBank has met their investment objectives. GODFREY OBIOMA says with its international strategic partnership and current quarterly results, there are strong indications of better returns in the coming year.
Consistently rising final dividend payment has been the hallmark of GT Bank, a trend that has endeaved it to investors.
The bank paid final dividends of N0.75 per share in 2003; N0.60 in 2004; N0.62 in 2005; N0.70 in 2006 and N0.95 per share in the 2007 financial year. These were paid from earnings per share of N1.28 per share in 2003; N1.35 in 2004; N1.10 in 2005; N1.45 in 2006 and N1.63 in 2007.
This partly explains the substantial capital appreciation. As at October 3, 2006, the share price of the bank grew by 56.03 percent in one year. In 6 months, it was 19.88 percent stronger and 51.92 percent higher in one month.
March 1, 200, GT Bank gained 7.62 percent in 8 months; 51.07 percent in 2 months ; 27.5 percent in 1 month and 5.75 percent in I week.
By April 24, 2007, investors reaped 10.7 percent capital gain in one month. The bank’s quarterly result for the period ended December 31, 2006 shows turnover of N40.5 billion, up from N26.35 billion in the corresponding quarter in 2005.Profit after tax was up from N2.34 billion to N3.42 billion.
To further boost earnings and deliver more superior returns to investors, the bank entered into strategic partnership with Morgan Stanley investment management, a leading investment bank in the United States. The partnership would also enable it take part in the management of the nation’s external reserves.
GT Bank also earned further international confidence with a $40-million credit line from the African Development Bank. This brings to $400million, the total funding from international finance institutions.
GT Banks international stature was further bolstered by the Netherlands Development Finance Company (FMO) acquisition of 15 percent equity interest in Guaranty Trust Bank Ghana Limited.
Recently, the bank’s $350-million Eurobond, the first of its kind in West Africa, was oversubscribed.
It is on account of this local and international pedigree that the bank has received (AA-) risk rating from Fitch, an international rating agency and BB- risk rating from Standard and Poor’s.
Back home, it received the first runners-up award in KPMG’s customer services excellence award in recognition of its excellent customer services delivery.
The superior service delivery was achieved through the creation of some financial products. These include cash plus, a debit card connected to customers accounts that give them access to all the electronic channels. Through this product, customers can pay for goods and serviced and withdraw cash from over 3,000 interswitch powered Automated Teller Machines (ATMs).
Also among its financial product is Guaranty Bank Master, a global and e-payment brands issued in partnership with MasterCard international.
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Consistently rising final dividend payment has been the hallmark of GT Bank, a trend that has endeaved it to investors.
The bank paid final dividends of N0.75 per share in 2003; N0.60 in 2004; N0.62 in 2005; N0.70 in 2006 and N0.95 per share in the 2007 financial year. These were paid from earnings per share of N1.28 per share in 2003; N1.35 in 2004; N1.10 in 2005; N1.45 in 2006 and N1.63 in 2007.
This partly explains the substantial capital appreciation. As at October 3, 2006, the share price of the bank grew by 56.03 percent in one year. In 6 months, it was 19.88 percent stronger and 51.92 percent higher in one month.
March 1, 200, GT Bank gained 7.62 percent in 8 months; 51.07 percent in 2 months ; 27.5 percent in 1 month and 5.75 percent in I week.
By April 24, 2007, investors reaped 10.7 percent capital gain in one month. The bank’s quarterly result for the period ended December 31, 2006 shows turnover of N40.5 billion, up from N26.35 billion in the corresponding quarter in 2005.Profit after tax was up from N2.34 billion to N3.42 billion.
To further boost earnings and deliver more superior returns to investors, the bank entered into strategic partnership with Morgan Stanley investment management, a leading investment bank in the United States. The partnership would also enable it take part in the management of the nation’s external reserves.
GT Bank also earned further international confidence with a $40-million credit line from the African Development Bank. This brings to $400million, the total funding from international finance institutions.
GT Banks international stature was further bolstered by the Netherlands Development Finance Company (FMO) acquisition of 15 percent equity interest in Guaranty Trust Bank Ghana Limited.
Recently, the bank’s $350-million Eurobond, the first of its kind in West Africa, was oversubscribed.
It is on account of this local and international pedigree that the bank has received (AA-) risk rating from Fitch, an international rating agency and BB- risk rating from Standard and Poor’s.
Back home, it received the first runners-up award in KPMG’s customer services excellence award in recognition of its excellent customer services delivery.
The superior service delivery was achieved through the creation of some financial products. These include cash plus, a debit card connected to customers accounts that give them access to all the electronic channels. Through this product, customers can pay for goods and serviced and withdraw cash from over 3,000 interswitch powered Automated Teller Machines (ATMs).
Also among its financial product is Guaranty Bank Master, a global and e-payment brands issued in partnership with MasterCard international.
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Stockbroker on why foreign companies won’t list in Nigeria
Foreign investors would only come to Nigeria to buy shares of quoted Nigerians companies but a foreign company would not come here to list at least for now, according to Godwin Obaseki, a stokebroker.
Abdul Imoyo
Obaseki was reacting to the continued growth in the liquidity of the secondary market of the Nigerian stock Exchange (NSE) with strong presence of foreign investors.
The chief executive, Afrinvest West Africa Limited, says the attributes of the current market growth are democracy, Federal Government’s reform programmes, and investor demand for global best practices.
According to him, foreign investors are really looking into the Nigerian market even as the local companies are putting their shares abroad for those investors who cannot get here.
"I do not see an European company coming in soon to take advantage of the vibrancy and liquidity in Nigerian capital market (Lagos) to list their companies. There is no attraction, because there is more money in Europe than coming to list in Lagos," Obaseki said.
"But we should be looking at more companies in the sub regions, that is, rest of West Africa coming in soon to take advantage of the vibrancy and liquidity in Lagos to list their companies."
He added: With Euro-bond, foreign investors are beginning to look into Nigerian securities, and "they don’t want to sit in Europe and USA to buy, they have been to China and Hong Kong. Suddenly, we are beginning to see them move in because of the strength of our market."
According to him, Nigeria can either find West African companies with operations here who need capital for their own market or countries that do not have a vibrant capital market like Nigeria to list their companies.
It would be recalled that M-net super sports of South Africa, which listed on the NSE a few years back, had since withdrawn from the NSE.
However, Obaseki has canvassed the development of market infrastructure such that investors who are buying new issues would get value for their money.
Specifically, he was of the view that investors in the primary market such as those buying initial public offerings (IPOs) should be issued share certificates electronically, such that after allotment of shares they could trade their holdings immediately.
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Abdul Imoyo
Obaseki was reacting to the continued growth in the liquidity of the secondary market of the Nigerian stock Exchange (NSE) with strong presence of foreign investors.
The chief executive, Afrinvest West Africa Limited, says the attributes of the current market growth are democracy, Federal Government’s reform programmes, and investor demand for global best practices.
According to him, foreign investors are really looking into the Nigerian market even as the local companies are putting their shares abroad for those investors who cannot get here.
"I do not see an European company coming in soon to take advantage of the vibrancy and liquidity in Nigerian capital market (Lagos) to list their companies. There is no attraction, because there is more money in Europe than coming to list in Lagos," Obaseki said.
"But we should be looking at more companies in the sub regions, that is, rest of West Africa coming in soon to take advantage of the vibrancy and liquidity in Lagos to list their companies."
He added: With Euro-bond, foreign investors are beginning to look into Nigerian securities, and "they don’t want to sit in Europe and USA to buy, they have been to China and Hong Kong. Suddenly, we are beginning to see them move in because of the strength of our market."
According to him, Nigeria can either find West African companies with operations here who need capital for their own market or countries that do not have a vibrant capital market like Nigeria to list their companies.
It would be recalled that M-net super sports of South Africa, which listed on the NSE a few years back, had since withdrawn from the NSE.
However, Obaseki has canvassed the development of market infrastructure such that investors who are buying new issues would get value for their money.
Specifically, he was of the view that investors in the primary market such as those buying initial public offerings (IPOs) should be issued share certificates electronically, such that after allotment of shares they could trade their holdings immediately.
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Tuesday, May 22, 2007
Dangote, Otedola buy Port Harcourt Refinery for N71.8bn
Again, Aliko Dangote’s name popped up in the mega-dollar deals that have characterised the twilight of the Olusegun Obasanjo administration as the Port Harcourt refinery was yesterday sold to a consortium, Bluestar Oil Services Limited, where he holds controlling shares.
BADEJO ADEMUYIWA, Abuja
For an offer of $561-million (N71.8-billion), ownership of the premier refinery now rests with the consortium partners where Dangote holds 55 percent stake. Zenon Oil, promoted by Femi Otedola, holds 25 percent in Bluestar Oil services, with the Rivers State government having 15 percent while Transcorp holds the balance of five percent.
The deal was part of many sealed at the opening of financial bids for some state enterprises held in Abuja under the auspices of the Bureau for Public Enterprises (BPE).
The consortium paid a draft of $300-million (N38.1-billion) at the bid opening and is expected to pay the balance of $261-million within seven days of notification of a successful bid.
Bluestar’s acquisition of Port Harcourt refinery is a fulfillment of the directive given by President Obasanjo that at least one refinery and cement company be reserved for Dangote under the Federal Government’s divestment from control of the commanding heights of the economy.
With Dangote’s earlier foray into cement, sugar and salt production where he exercises near total dominance as well as in rice importation, the business mogul now has effective control of the commanding heights of the economy.
The ownership of the Port Harcourt Refinery yesterday moved to the private sector with an offer of $561 million or N71.8 billion from Bluestar Oil services limited consortium.
Bluestar emerged after both Oando plc and Refinee Petroplus Nigeria Limited were disqualified from the bid in the first round for failure to include the draft for 50 percent of their offer price in their bids.
The sale of Kaduna Refinery elicited a $102-million (N12.9-billion) offer from China National Petroleum Corporation (CNPC), a bid the BPE declared as below the reserve price. If the bid is accepted, the bidder is expected to pay 25 percent of its offer.
Upon ratification by the National Council on Privatisation (NCP), CNPC is expected to pay the 75 percent balance within 60 days of notification of successful bid.
Dangote also offered $1.781-billion (N226.2-billion) for the Federal Government’s 35 percent equity in Onigbolo Cement in Benin Republic, from which 10 percent of the bid offer or $178.1-million (N2.26-billion) cheque was given to the BPE.
Dangote is expected to pay the 90 percent balance within 30 days from today.
Dangote expressed delight after the bid, declaring that Nigerians are the only ones to develop the country’s economy.
"I feel very great. There is nobody that will come and grow our own economy more than us and that is why we are heavily investing because we believe it is our own economy, we believe in the country and we believe in the economic policy of Nigeria and that’s why we are here to make sure that we bid and win. It’s not only about winning. It’s about where do we go from here."
He outlined the post acquisition plan for Port Harcourt Refinery, pointing out it would be reactivated with some investments spread over phases.
"Right now for the reactivation, we intend to pump in $200-million (N25.4-billion) that is for the first phase. The second phase is to double the refinery’s capacity, which I think is going to cost us about $3-billion (N384-billion) and we are ready to do that.
"We intend to make sure that we expand the refinery. Apart from that, we already have plans to build a refinery of 300,000 barrels a day capacity in Lagos. Because really, it is very criminal to be importing petroleum products of $9-billion when we are a producer and that is the main reason why we are here."
For Onigbolo Cement, Republic of Benin, he said: "We are investing over $2-billion (N256-billion) in cement in the next three years."
Dangote denied monopolising the cement market, stating that his intention was to help in building the economy.
"Like what I said earlier on, if we don’t build our economy nobody is going to do it. If anybody is going to come in, he is quite welcome, it’s a free entry, free exit market.
"Number two, if you remember, the first factory that we had producing cement was in 1956. From 1956 up till the time that we entered into cement, the total production of Nigeria went as low as less than 2.3-million tons.
"In a single location last week, we commissioned five million tons capacity. If we are not there, you will not be able to build a house, forever."
He predicted that the price of cement will come down by 2010, adding that the price will not be more than N1,000 anywhere in Nigeria.
"If you look at it today, we are selling cement at N1, 130 depending on the location; so ideally, cement shouldn’t cost, even in Abuja, more than N1, 200.
But at the moment because of the economic prosperity and also the bottlenecks in the import process, the price is higher."
"People are in a hurry. With our capacity today - Obajana, Benue and the two terminals in Lagos and Port Harcourt - we can actually churn out about 38,000 metric tons a day. That is about 2,000 trucks a day.
"And we are going to achieve that in the next four months. In Obajana right now, out of 15,000, we are operating about 5,000 metric tons. By next week, we are going to be at about 10,000.
"Eventually by 2010, we want to make history by making sure that cement does not cost more than N1,000 anywhere in Nigeria. And quote me that is our target.
"Local production is under about 30 percent. But mind you one single line of Obajana is bigger that all the production plants in Nigeria."
Liquefied Petroleum Gas Depots in Calabar, Kano, Ibadan, Enugu, Ilorin and Markurdi were also on offer for bids.
Sahara Energy Resources Limited emerged the preferred bidder for Calabar depot with $11.1-million (N1.42-billion) while MRS Oil and Gas Limited was the reserved bidder with $10-million offer. Lopa Energy Company won the bid for Markurdi depot with $250, 000 (N32-million).
MRS Oil services offered $4-million (N512-million) to win the bid for Kano depot, Le Global also won the bid for Ilorin with $1.948-million (N249.3-million) while Brookport emerged the preferred bidder for Enugu depot with $3-million (N384-million) offer and DSV Pipetronex Limited was the reserved bidder with $2.5-million.
For the winners of the LPG depots, 10 percent of the offered price must be paid into BPE designated accounts within 10 days of official notification of successful bids while the 90 percent balance is to be paid within 60 days of official notification.
Other transactions sealed at the bid opening are Egbin Power plc, which Korea Electric Power Corporation (KEPCO)/Energy Resources Limited at $280-million (N35.84-billion), AYIP-EKU Oil Palm; which attracted N527-million from Wingsong M-House Palm Oil Investment Limited and Ajaokuta Steel Complex, which Global Infrastructure Nigeria Limited got for $525-million (N67.2-billion).
National facilities including Tafawa Balewa Square, Lagos International Trade Fair and the National Arts Theatre all in Lagos were also offered for concession ranging from 25 to 35 years.
Infrastructica offered N35.84-billion to emerge the preferred bidder for the 35 years concession of National Theatre beating BHI Ventures, which offered N28.902-billion to the reserved bidder’s slot.
For the 25 years concession of Tafawa Balewa Square, BHS International is the preferred bidder with the offer of N9.5-billion while Black Swan is the reserved bidder with N9.21-billion.
Aulic Nigeria Limited emerged the preferred bidder for the 25 years concession of Lagos International Trade Fair complex with its N40-billion offer to push Unison Property Development Limited to the reserved slot.
Nine coal blocs and 13 mining titles were also jostled for by a total of 17 prospective investors after which winners emerged.
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BADEJO ADEMUYIWA, Abuja
For an offer of $561-million (N71.8-billion), ownership of the premier refinery now rests with the consortium partners where Dangote holds 55 percent stake. Zenon Oil, promoted by Femi Otedola, holds 25 percent in Bluestar Oil services, with the Rivers State government having 15 percent while Transcorp holds the balance of five percent.
The deal was part of many sealed at the opening of financial bids for some state enterprises held in Abuja under the auspices of the Bureau for Public Enterprises (BPE).
The consortium paid a draft of $300-million (N38.1-billion) at the bid opening and is expected to pay the balance of $261-million within seven days of notification of a successful bid.
Bluestar’s acquisition of Port Harcourt refinery is a fulfillment of the directive given by President Obasanjo that at least one refinery and cement company be reserved for Dangote under the Federal Government’s divestment from control of the commanding heights of the economy.
With Dangote’s earlier foray into cement, sugar and salt production where he exercises near total dominance as well as in rice importation, the business mogul now has effective control of the commanding heights of the economy.
The ownership of the Port Harcourt Refinery yesterday moved to the private sector with an offer of $561 million or N71.8 billion from Bluestar Oil services limited consortium.
Bluestar emerged after both Oando plc and Refinee Petroplus Nigeria Limited were disqualified from the bid in the first round for failure to include the draft for 50 percent of their offer price in their bids.
The sale of Kaduna Refinery elicited a $102-million (N12.9-billion) offer from China National Petroleum Corporation (CNPC), a bid the BPE declared as below the reserve price. If the bid is accepted, the bidder is expected to pay 25 percent of its offer.
Upon ratification by the National Council on Privatisation (NCP), CNPC is expected to pay the 75 percent balance within 60 days of notification of successful bid.
Dangote also offered $1.781-billion (N226.2-billion) for the Federal Government’s 35 percent equity in Onigbolo Cement in Benin Republic, from which 10 percent of the bid offer or $178.1-million (N2.26-billion) cheque was given to the BPE.
Dangote is expected to pay the 90 percent balance within 30 days from today.
Dangote expressed delight after the bid, declaring that Nigerians are the only ones to develop the country’s economy.
"I feel very great. There is nobody that will come and grow our own economy more than us and that is why we are heavily investing because we believe it is our own economy, we believe in the country and we believe in the economic policy of Nigeria and that’s why we are here to make sure that we bid and win. It’s not only about winning. It’s about where do we go from here."
He outlined the post acquisition plan for Port Harcourt Refinery, pointing out it would be reactivated with some investments spread over phases.
"Right now for the reactivation, we intend to pump in $200-million (N25.4-billion) that is for the first phase. The second phase is to double the refinery’s capacity, which I think is going to cost us about $3-billion (N384-billion) and we are ready to do that.
"We intend to make sure that we expand the refinery. Apart from that, we already have plans to build a refinery of 300,000 barrels a day capacity in Lagos. Because really, it is very criminal to be importing petroleum products of $9-billion when we are a producer and that is the main reason why we are here."
For Onigbolo Cement, Republic of Benin, he said: "We are investing over $2-billion (N256-billion) in cement in the next three years."
Dangote denied monopolising the cement market, stating that his intention was to help in building the economy.
"Like what I said earlier on, if we don’t build our economy nobody is going to do it. If anybody is going to come in, he is quite welcome, it’s a free entry, free exit market.
"Number two, if you remember, the first factory that we had producing cement was in 1956. From 1956 up till the time that we entered into cement, the total production of Nigeria went as low as less than 2.3-million tons.
"In a single location last week, we commissioned five million tons capacity. If we are not there, you will not be able to build a house, forever."
He predicted that the price of cement will come down by 2010, adding that the price will not be more than N1,000 anywhere in Nigeria.
"If you look at it today, we are selling cement at N1, 130 depending on the location; so ideally, cement shouldn’t cost, even in Abuja, more than N1, 200.
But at the moment because of the economic prosperity and also the bottlenecks in the import process, the price is higher."
"People are in a hurry. With our capacity today - Obajana, Benue and the two terminals in Lagos and Port Harcourt - we can actually churn out about 38,000 metric tons a day. That is about 2,000 trucks a day.
"And we are going to achieve that in the next four months. In Obajana right now, out of 15,000, we are operating about 5,000 metric tons. By next week, we are going to be at about 10,000.
"Eventually by 2010, we want to make history by making sure that cement does not cost more than N1,000 anywhere in Nigeria. And quote me that is our target.
"Local production is under about 30 percent. But mind you one single line of Obajana is bigger that all the production plants in Nigeria."
Liquefied Petroleum Gas Depots in Calabar, Kano, Ibadan, Enugu, Ilorin and Markurdi were also on offer for bids.
Sahara Energy Resources Limited emerged the preferred bidder for Calabar depot with $11.1-million (N1.42-billion) while MRS Oil and Gas Limited was the reserved bidder with $10-million offer. Lopa Energy Company won the bid for Markurdi depot with $250, 000 (N32-million).
MRS Oil services offered $4-million (N512-million) to win the bid for Kano depot, Le Global also won the bid for Ilorin with $1.948-million (N249.3-million) while Brookport emerged the preferred bidder for Enugu depot with $3-million (N384-million) offer and DSV Pipetronex Limited was the reserved bidder with $2.5-million.
For the winners of the LPG depots, 10 percent of the offered price must be paid into BPE designated accounts within 10 days of official notification of successful bids while the 90 percent balance is to be paid within 60 days of official notification.
Other transactions sealed at the bid opening are Egbin Power plc, which Korea Electric Power Corporation (KEPCO)/Energy Resources Limited at $280-million (N35.84-billion), AYIP-EKU Oil Palm; which attracted N527-million from Wingsong M-House Palm Oil Investment Limited and Ajaokuta Steel Complex, which Global Infrastructure Nigeria Limited got for $525-million (N67.2-billion).
National facilities including Tafawa Balewa Square, Lagos International Trade Fair and the National Arts Theatre all in Lagos were also offered for concession ranging from 25 to 35 years.
Infrastructica offered N35.84-billion to emerge the preferred bidder for the 35 years concession of National Theatre beating BHI Ventures, which offered N28.902-billion to the reserved bidder’s slot.
For the 25 years concession of Tafawa Balewa Square, BHS International is the preferred bidder with the offer of N9.5-billion while Black Swan is the reserved bidder with N9.21-billion.
Aulic Nigeria Limited emerged the preferred bidder for the 25 years concession of Lagos International Trade Fair complex with its N40-billion offer to push Unison Property Development Limited to the reserved slot.
Nine coal blocs and 13 mining titles were also jostled for by a total of 17 prospective investors after which winners emerged.
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Shareholders approve N2bn rights issue for CCNN
Shareholders of Cement Company of Northern Nigeria (CCNN) Plc have mandated directors of the company to raise about N1.6 billion new equity funds and finance its business development programmes.
Chinedu Dike
At an extra-ordinary general meeting in Sokoto, shareholders authorised the directors to issue new ordinary shares of 50 kobo each to existing shareholders, thus strengthening the company’s plan to access the capital market for funds.
To realise this aim, the board of the cement company has commenced moves to speed up the rights issue to ensure that they get the offer proceeds by the third quarter.
The net proceeds of the rights issue, estimated at N1.5 billion would be used to set up a 12 megawatts power plant for the company through the purchase of three units of four megawatts (4MW) electric generating sets.
Part of the net proceeds would also be used to buy equipment to store, blend and burn biomass in the cement kiln in furtherance of the company’s alternative energy programme.
Ibrahim Gobir, Chairman, CCNN says the rights issue would enhance the growth of the company as the new power plant and alternative energy project would greatly reduce cost of operations.
He says the board is committed to implementing growth initiatives that would stabilize the operations of the company and ensure better returns for shareholders.
Alf Karlsen, managing director, CCNN), says the energy projects are important for the sustainable profitable operations of the company noting that costs of heavy fuels and diesel constitute about 40 per cent of total costs in 2006.
He points out that the completion of the company-owned power plant would enable CCNN to quit the leasing arrangements it has been using for energy generation since 2001, and be in a better position to manage its energy costs.
"Replacing a portion of the low pour fuel oil (LPFO) we used for heating the kiln and producing clinker with biomass like rice husk and peanuts shells, will further reduce energy costs in the production process," he explains.
According to him, since CCNN does not have access to gas now like its competitors in the southern part of the country, it has to use alternatives it can find to match any cost advantages its competitors are enjoying.
Karlsen expresses optimism that the rights issue would be fully subscribed as shareholders fully support the business development programme of the company.
The CCNN managing director notes that the company is being repositioned for sustainable growth.
According to him, operational and technical problems that adversely affected the profitability of the company in recent times are being addressed to forestall disruption in production that usually lead to operational losses for the company.
He explains that the cement maker has commenced aggressive replacement of facilities and a refurbishment programme since 2001, and is making more investments to strengthen the operations of the company. The replacement of machinery and refurbishment of the kiln would forestall break down in production and sustain increasing capacity utilization that began in 2002.
Karlsen says the company has put in place an efficient monitoring system that would facilitate effective maintenance of machinery and other facilities.
The approval of the rights issue shows the willingness of Heidelberg Cement (HC) Group, the world’s fourth largest cement produer, and other key stakeholders to inject about N1.56 billion new equity funds into CCCN.
Heidelberg Cement, through its subsidiary, Scancem International ANS, is expected to inject about N791 million and could raise their commitment. Three other key stakeholders, Nasdal Bap Nigeria Limited, Dantata Investment & Security Company Limited and five Northern States are expected to inject N184 million, N129.5 million and N199.7 million respectively.
Heidelberg Cement, through Scancem International, has gradually increased its shareholding in CCNN from 40 per cent, acquired from the federal government during privatisation of CCNN in 2000 to 50.7 per cent equity stake through additional subscriptions to two rights issues during the period. This led to reduction in shareholdings by the five Northern States of Kebbi, Sokoto, Kano , Kaduna , Jigawa and Katsina from 36.8 per cent to 12.8 per cent.
Nasdal Bap Nigeria and Dantata Investment hold 11.8 per cent and 8.3 per cent equity stakes respectively while another foreign company, Ferrostal AG holds 0.1 per cent. The Nigerian investing public hold the balance of 16.3 per cent of equities.
Heidelberg Cement (HC) Group is the world’s fourth largest cement supplier, with operations in 50 countries through 469 subsidiaries. The HC Group sold 68 million tonnes of cement in 2005 alone. With a share capital of Euro 296 million and 41,000 employees, the HC Group turnover was more than Euro 7.80 billion while profit before tax totalled Euro 772 million in 2005. The Group commenced operations in Africa in 1965 and its presence in Nigeria dates back to 1981. HC Group, through its subsidiary Scancem International, currently operates in nine African countries including Sierra Leone, Liberia , Ghana , Togo , Republic of Benin , Republic of Niger , Gabon , Tanzania and Nigeria .
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Chinedu Dike
At an extra-ordinary general meeting in Sokoto, shareholders authorised the directors to issue new ordinary shares of 50 kobo each to existing shareholders, thus strengthening the company’s plan to access the capital market for funds.
To realise this aim, the board of the cement company has commenced moves to speed up the rights issue to ensure that they get the offer proceeds by the third quarter.
The net proceeds of the rights issue, estimated at N1.5 billion would be used to set up a 12 megawatts power plant for the company through the purchase of three units of four megawatts (4MW) electric generating sets.
Part of the net proceeds would also be used to buy equipment to store, blend and burn biomass in the cement kiln in furtherance of the company’s alternative energy programme.
Ibrahim Gobir, Chairman, CCNN says the rights issue would enhance the growth of the company as the new power plant and alternative energy project would greatly reduce cost of operations.
He says the board is committed to implementing growth initiatives that would stabilize the operations of the company and ensure better returns for shareholders.
Alf Karlsen, managing director, CCNN), says the energy projects are important for the sustainable profitable operations of the company noting that costs of heavy fuels and diesel constitute about 40 per cent of total costs in 2006.
He points out that the completion of the company-owned power plant would enable CCNN to quit the leasing arrangements it has been using for energy generation since 2001, and be in a better position to manage its energy costs.
"Replacing a portion of the low pour fuel oil (LPFO) we used for heating the kiln and producing clinker with biomass like rice husk and peanuts shells, will further reduce energy costs in the production process," he explains.
According to him, since CCNN does not have access to gas now like its competitors in the southern part of the country, it has to use alternatives it can find to match any cost advantages its competitors are enjoying.
Karlsen expresses optimism that the rights issue would be fully subscribed as shareholders fully support the business development programme of the company.
The CCNN managing director notes that the company is being repositioned for sustainable growth.
According to him, operational and technical problems that adversely affected the profitability of the company in recent times are being addressed to forestall disruption in production that usually lead to operational losses for the company.
He explains that the cement maker has commenced aggressive replacement of facilities and a refurbishment programme since 2001, and is making more investments to strengthen the operations of the company. The replacement of machinery and refurbishment of the kiln would forestall break down in production and sustain increasing capacity utilization that began in 2002.
Karlsen says the company has put in place an efficient monitoring system that would facilitate effective maintenance of machinery and other facilities.
The approval of the rights issue shows the willingness of Heidelberg Cement (HC) Group, the world’s fourth largest cement produer, and other key stakeholders to inject about N1.56 billion new equity funds into CCCN.
Heidelberg Cement, through its subsidiary, Scancem International ANS, is expected to inject about N791 million and could raise their commitment. Three other key stakeholders, Nasdal Bap Nigeria Limited, Dantata Investment & Security Company Limited and five Northern States are expected to inject N184 million, N129.5 million and N199.7 million respectively.
Heidelberg Cement, through Scancem International, has gradually increased its shareholding in CCNN from 40 per cent, acquired from the federal government during privatisation of CCNN in 2000 to 50.7 per cent equity stake through additional subscriptions to two rights issues during the period. This led to reduction in shareholdings by the five Northern States of Kebbi, Sokoto, Kano , Kaduna , Jigawa and Katsina from 36.8 per cent to 12.8 per cent.
Nasdal Bap Nigeria and Dantata Investment hold 11.8 per cent and 8.3 per cent equity stakes respectively while another foreign company, Ferrostal AG holds 0.1 per cent. The Nigerian investing public hold the balance of 16.3 per cent of equities.
Heidelberg Cement (HC) Group is the world’s fourth largest cement supplier, with operations in 50 countries through 469 subsidiaries. The HC Group sold 68 million tonnes of cement in 2005 alone. With a share capital of Euro 296 million and 41,000 employees, the HC Group turnover was more than Euro 7.80 billion while profit before tax totalled Euro 772 million in 2005. The Group commenced operations in Africa in 1965 and its presence in Nigeria dates back to 1981. HC Group, through its subsidiary Scancem International, currently operates in nine African countries including Sierra Leone, Liberia , Ghana , Togo , Republic of Benin , Republic of Niger , Gabon , Tanzania and Nigeria .
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Bright ideas to flourish as SEC approves 11 venture capital firms
GODFREY OBIOMA Small scale entrepreneurs who need seed capital to finance their business ideas have greater chances of realizing their dreams as the Securities and Exchange Commission (SEC) approves the operation of eleven venture capital companies which are already managing N8.6-billion for their clients.
The venture capital companies include SME Managers Limited; Amalgamated Capital Fund Limited; Deap Management and Trust Limited; HNB Trustee Limited; IBTC Ventures Capital and Enterprises Capital Management Limi8ted; First Funds Limited and Intercontinental Capital Market.
According to information from the Securities and Exchange Commission (SEC), the apex capital market regulatory institution, SME Managers Limited is managing about 1.89 billion on behalf of its clients; IBTC Ventures Limited N0.57 billion; Intercontinental Capital Market Limited N1.52 billion; First Funds Limited N4.55 billion, HNB Trustees Limited N0.08 billion and Amalgamated Capital Funds N0.12 billion.
The Investment and Securities Act of 1999 empowers SEC to develop and regulate venture capital companies in the country; monitor the companies and their managers; collate and analyse returns from such firms.
The purpose of the monitoring of venture capital managers is to ensure that the 10 percent of profit before tax set aside by banks for the small and medium industry equity scheme is disbursed by their fund managers.
The inspection of these companies is also meant to collate data on the number of SMEs to ensure that the funds are disbursed to the appropriate sectors of the country.
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The venture capital companies include SME Managers Limited; Amalgamated Capital Fund Limited; Deap Management and Trust Limited; HNB Trustee Limited; IBTC Ventures Capital and Enterprises Capital Management Limi8ted; First Funds Limited and Intercontinental Capital Market.
According to information from the Securities and Exchange Commission (SEC), the apex capital market regulatory institution, SME Managers Limited is managing about 1.89 billion on behalf of its clients; IBTC Ventures Limited N0.57 billion; Intercontinental Capital Market Limited N1.52 billion; First Funds Limited N4.55 billion, HNB Trustees Limited N0.08 billion and Amalgamated Capital Funds N0.12 billion.
The Investment and Securities Act of 1999 empowers SEC to develop and regulate venture capital companies in the country; monitor the companies and their managers; collate and analyse returns from such firms.
The purpose of the monitoring of venture capital managers is to ensure that the 10 percent of profit before tax set aside by banks for the small and medium industry equity scheme is disbursed by their fund managers.
The inspection of these companies is also meant to collate data on the number of SMEs to ensure that the funds are disbursed to the appropriate sectors of the country.
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Saturday, May 12, 2007
First Bank, Zenith, UBA, 7 others for London Stock Exchange
Ten Nigerian banks, including First Bank, Zenith Bank, United Bank for Africa (UBA) and Oceanic Bank International, will form the fulcrum of a strategic move by the Nigerian Stock Exchange (NSE) to get Nigerian companies listed on the London Stock Exchange, one of the most hyped bourses in the world.
GODFREY OBIOMA & Kunle Mayadenu
If this push by the NSE materialises, it will herald the effective arrival of Nigerian companies on the stage of international capital finance market, where there shares can be traded. London is particularly seen as the world’s financial capital with a stock market that attracts interest from companies in North America, Europe, Asia and the Middle East.
The NSE is expected to begin the strategic move when it showcases the 10 banks next month at an LSE investors’ gathering in London.
Farooq Oreagba, managing director, NSE Consult and head of strategy and derivative, of the Exchange told Business Day in an interview that when the idea of trans-border listing on the LSE was muted, the leadership of both Exchanges agreed that some Nigerian listed companies should be made to display their facts-behind-the-figure to international market operators.
Subsequently, the NSE selected 10 banks to be showcased on the LSE.
The banks already pencilled for the international market exposure are First Bank, Union Bank, Zenith Bank, Oceanic Bank, UBA, Intercontinental Bank, GTBank, Afribank, Ecobank and Access Bank.
The choice of these banks was based on their impressive market fundamentals, which are expected to excite offshore fund managers, stock brokers and regulatory agencies, analysts have said.
For example, First Bank reported earning per share of N2.96 in 2004, N2.61 in 2005 and N3.08 in 2006. For Union Bank, it was N1.80 in 2004, N1.65 in 2005 and N1.62 in 2006. Zenith Bank has price earning ratio of 13.71 times in 2005, 13.03 in 2006, and 17.41 as at the second quarter of 2007.
GTBank recorded PE ratio of 15.38 times in 2004, 12.27 in 2005 and 12.64 in 2006.
Zenith Bank currently has the highest market capitalisation of N443-billion; UBA N321.8-billion; GT Bank N304.9-billion; Union Bank N318.3-billion; Oceanic N227.3-billion, while Intercontinental Bank has a market capitalisation of N278.8-billion.
The showcasing of the banks on the LSE next month has been chosen to coincide with an international event that would attract fund managers from around the world. This is designed to be a precursor to the listing of these financial institutions on the LSE.
If the banks pass the first stage of the test, they would be expected to meet some listing requirements of the Exchange.
Although the market capitalisation of these banks do not measure up to those of companies listed on the LSE and emerging markets like South Africa and Egypt, analysts believe that they may be favoured in view of the rising international confidence in the Nigerian economy. Recently, the Standard and Poor’s and Fitch, two international rating agencies, assigned BB- ratings to the economy. These have largely contributed to an increased inflow of foreign equity capital into the country.
A growing understanding in the global arena that the Nigerian market is still grey, waiting to be harnessed is also expected to boost the fortune of locally quoted companies.
So far, only two instruments have enjoyed trans-border listings. These are the UBA Global Depository Receipts, listed on the New York Stock Exchange and OANDO, trading on the Johannesburg Stock Exchange.
Market watchers believe that the listing of more Nigerian companies abroad would further expose them to international investment best practices and re-channelling of global investment into the country.
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GODFREY OBIOMA & Kunle Mayadenu
If this push by the NSE materialises, it will herald the effective arrival of Nigerian companies on the stage of international capital finance market, where there shares can be traded. London is particularly seen as the world’s financial capital with a stock market that attracts interest from companies in North America, Europe, Asia and the Middle East.
The NSE is expected to begin the strategic move when it showcases the 10 banks next month at an LSE investors’ gathering in London.
Farooq Oreagba, managing director, NSE Consult and head of strategy and derivative, of the Exchange told Business Day in an interview that when the idea of trans-border listing on the LSE was muted, the leadership of both Exchanges agreed that some Nigerian listed companies should be made to display their facts-behind-the-figure to international market operators.
Subsequently, the NSE selected 10 banks to be showcased on the LSE.
The banks already pencilled for the international market exposure are First Bank, Union Bank, Zenith Bank, Oceanic Bank, UBA, Intercontinental Bank, GTBank, Afribank, Ecobank and Access Bank.
The choice of these banks was based on their impressive market fundamentals, which are expected to excite offshore fund managers, stock brokers and regulatory agencies, analysts have said.
For example, First Bank reported earning per share of N2.96 in 2004, N2.61 in 2005 and N3.08 in 2006. For Union Bank, it was N1.80 in 2004, N1.65 in 2005 and N1.62 in 2006. Zenith Bank has price earning ratio of 13.71 times in 2005, 13.03 in 2006, and 17.41 as at the second quarter of 2007.
GTBank recorded PE ratio of 15.38 times in 2004, 12.27 in 2005 and 12.64 in 2006.
Zenith Bank currently has the highest market capitalisation of N443-billion; UBA N321.8-billion; GT Bank N304.9-billion; Union Bank N318.3-billion; Oceanic N227.3-billion, while Intercontinental Bank has a market capitalisation of N278.8-billion.
The showcasing of the banks on the LSE next month has been chosen to coincide with an international event that would attract fund managers from around the world. This is designed to be a precursor to the listing of these financial institutions on the LSE.
If the banks pass the first stage of the test, they would be expected to meet some listing requirements of the Exchange.
Although the market capitalisation of these banks do not measure up to those of companies listed on the LSE and emerging markets like South Africa and Egypt, analysts believe that they may be favoured in view of the rising international confidence in the Nigerian economy. Recently, the Standard and Poor’s and Fitch, two international rating agencies, assigned BB- ratings to the economy. These have largely contributed to an increased inflow of foreign equity capital into the country.
A growing understanding in the global arena that the Nigerian market is still grey, waiting to be harnessed is also expected to boost the fortune of locally quoted companies.
So far, only two instruments have enjoyed trans-border listings. These are the UBA Global Depository Receipts, listed on the New York Stock Exchange and OANDO, trading on the Johannesburg Stock Exchange.
Market watchers believe that the listing of more Nigerian companies abroad would further expose them to international investment best practices and re-channelling of global investment into the country.
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Thursday, May 10, 2007
First Bank offers 23 per cent on rights issue
First Bank of Nigeria Plc is offering a rights issue to investors which opens on Monday, May 14, 2007. The offer is coming at 23.3 per cent or N9.40 less than the market price of N40.40.
Chinedu Dike
A total of 1, 624, 253, 238 ordinary shares of 50kobo each is being issued to the investing public by way of offer for subscription at N33.00 per share giving an offer size of N53.6 billion. Also a rights issue of 1, 496, 762, 682 ordinary shares of 50kobo each is also being made to existing shareholders of the bank at N31.00 per share giving an offer size of N43.4 billion. The public offer comes at a discount of N7.40 while the existing shareholders enjoy a discount of N9.40 on the rights issue
Also fresh investments in the bank through the public offer will be made at 18.3 per cent or N7.40 less the current price at the stock market.
Market watchers say this is a very friendly price that the market will readily accept based on the performance history of the bank.
The bank is seeking to raise about N100 billion fresh funds through a hybrid of offer for subscription and rights issue.
All arrangements to the offer were concluded yesterday at a completion board meeting held in Lagos with all parties to the offer putting hands on paper to seal the deal.
According to the bank, the net offer proceeds of N96 billion will be deployed to a number of projects to reposition the bank and boost its working capital.
As contained in the offer prospectus, the proceeds of the offer will be used to widen the bank’s retail infrastructure in Nigeria via the expansion of branch network; strengthen capital base, to support business growth; expand capital resources to exploit value creation opportunities in the regional financial markets.
Specifically, branch expansion will gulp N21.930 billion or 22.8 per cent of the total proceeds, and the projects will be completed over a period of 24 months. Upgrade of branch network will take up N12.225 billion or 12.7 per cent; strategic business development which involves ATM rollout and electronic banking will take up N10.280 billion or 10.7 per cent; increase in equity investment in subsidiaries will gulp N11 billion or 11.5 per cent, while investment in new subsidiaries will take N7.0 billion or 7.3 per cent. The biggest chunk of N27.140 billion or 28.3 per cent will be applied to increase the bank’s working capital, just as N6.425 billion will be used to upgrade information technology infrastructure.
The offer is the highest in the history of the nation’s capital market. Already, opinions are strong that the offer will be over-subscribed given the track record of the bank.
First Bank is currently capitalised at N345.8 billion. This is expected to shot up to N448.7 billion at the conclusion and listing of the new shares.
The bank recorded gross earnings of N51.2 billion for the nine months ended December 31, 2006, compared to the March 31, 2006 full year earnings of N57.4 billion. Profit before tax for the third quarter period stood at N18.8 billion, in contrast to 2006 full year profits of N21.8 billion.
For the 2007 full year ended March 31 2007, the bank is making a forecast of N23.3 billion in pre-tax profits, while after tax profit is projected at N18.3 billion. Shareholders are expected to receive N7.8 billion in cash dividends, translating to a payout rate of 75kobo per share.
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Chinedu Dike
A total of 1, 624, 253, 238 ordinary shares of 50kobo each is being issued to the investing public by way of offer for subscription at N33.00 per share giving an offer size of N53.6 billion. Also a rights issue of 1, 496, 762, 682 ordinary shares of 50kobo each is also being made to existing shareholders of the bank at N31.00 per share giving an offer size of N43.4 billion. The public offer comes at a discount of N7.40 while the existing shareholders enjoy a discount of N9.40 on the rights issue
Also fresh investments in the bank through the public offer will be made at 18.3 per cent or N7.40 less the current price at the stock market.
Market watchers say this is a very friendly price that the market will readily accept based on the performance history of the bank.
The bank is seeking to raise about N100 billion fresh funds through a hybrid of offer for subscription and rights issue.
All arrangements to the offer were concluded yesterday at a completion board meeting held in Lagos with all parties to the offer putting hands on paper to seal the deal.
According to the bank, the net offer proceeds of N96 billion will be deployed to a number of projects to reposition the bank and boost its working capital.
As contained in the offer prospectus, the proceeds of the offer will be used to widen the bank’s retail infrastructure in Nigeria via the expansion of branch network; strengthen capital base, to support business growth; expand capital resources to exploit value creation opportunities in the regional financial markets.
Specifically, branch expansion will gulp N21.930 billion or 22.8 per cent of the total proceeds, and the projects will be completed over a period of 24 months. Upgrade of branch network will take up N12.225 billion or 12.7 per cent; strategic business development which involves ATM rollout and electronic banking will take up N10.280 billion or 10.7 per cent; increase in equity investment in subsidiaries will gulp N11 billion or 11.5 per cent, while investment in new subsidiaries will take N7.0 billion or 7.3 per cent. The biggest chunk of N27.140 billion or 28.3 per cent will be applied to increase the bank’s working capital, just as N6.425 billion will be used to upgrade information technology infrastructure.
The offer is the highest in the history of the nation’s capital market. Already, opinions are strong that the offer will be over-subscribed given the track record of the bank.
First Bank is currently capitalised at N345.8 billion. This is expected to shot up to N448.7 billion at the conclusion and listing of the new shares.
The bank recorded gross earnings of N51.2 billion for the nine months ended December 31, 2006, compared to the March 31, 2006 full year earnings of N57.4 billion. Profit before tax for the third quarter period stood at N18.8 billion, in contrast to 2006 full year profits of N21.8 billion.
For the 2007 full year ended March 31 2007, the bank is making a forecast of N23.3 billion in pre-tax profits, while after tax profit is projected at N18.3 billion. Shareholders are expected to receive N7.8 billion in cash dividends, translating to a payout rate of 75kobo per share.
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N44.4bn Eurobond earns GTBank ‘The Banker —Deal of the year award’
Guaranty Trust Bank’s bid which won the $350 million (N44.4billion)-8.5 percent Eurobond due 2012 has earned the bank ‘The Banker-deal of the year award’.
IHEANYI NWACHUKWU, SIMON UGWU
GTBank has become the first Nigerian bank to win such award by The Banker, Financial Times of London. In a letter signed by Louis Azode, country representative, The Banker, Financial Times of London, made available to Business Day, the Eurobond deal is hugely significant and indicative of the strides that Nigeria has made in improving it credit rating, "as few foreign investors would not have touched Nigeria outside of oil and gas sector, not too long ago".
In January 2007, GTBank launched a five year $350million (N44.4billion) Eurobond, the first dollar-denominated Eurobond issued by Nigerian bank or company in the global capital market.
The initial $300 million (N38.1billion) was 1.7 times oversubscribed and $350 million (N44.4billion) in orders were eventually allotted. The bond according to our source was priced at an effective yield to maturity of 8.62 percent.
The deal of the year award, according to Azode is being given to GTBank this week at Bahrain in the Middle East, "as Bahrain, an oil-rich country opens its ultra-modern and most impressive Bahrain Financial Harbour, indicative of efficient utilisation of oil money".
"Meanwhile, Standard Bank and Afrinvest were the joint lead managers. Standard Bank was the sole book-runner". Azode noted that Industrial and Commercial Bank of China (ICBC) won the ‘first global deal of the year award’ with its $21.9billion (N2.7trillion) initial public offer (IPO).
"It was a unanimous decision by the judges of The Banker that ICBC’s IPO on the Hong Kong and Shanghai stock exchanges is the world’s largest deal to date. The transaction was most spectacular for a bank that had more than 27 percent non-performing assets about two years ago.
Equally, South Africa’s $1.1 billion (N139.7billion) Kumba Resource Unbundling and Eyesizwe Consortium Black Economic Empowerment Transaction grabbed the ‘regional award for African continent’.
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IHEANYI NWACHUKWU, SIMON UGWU
GTBank has become the first Nigerian bank to win such award by The Banker, Financial Times of London. In a letter signed by Louis Azode, country representative, The Banker, Financial Times of London, made available to Business Day, the Eurobond deal is hugely significant and indicative of the strides that Nigeria has made in improving it credit rating, "as few foreign investors would not have touched Nigeria outside of oil and gas sector, not too long ago".
In January 2007, GTBank launched a five year $350million (N44.4billion) Eurobond, the first dollar-denominated Eurobond issued by Nigerian bank or company in the global capital market.
The initial $300 million (N38.1billion) was 1.7 times oversubscribed and $350 million (N44.4billion) in orders were eventually allotted. The bond according to our source was priced at an effective yield to maturity of 8.62 percent.
The deal of the year award, according to Azode is being given to GTBank this week at Bahrain in the Middle East, "as Bahrain, an oil-rich country opens its ultra-modern and most impressive Bahrain Financial Harbour, indicative of efficient utilisation of oil money".
"Meanwhile, Standard Bank and Afrinvest were the joint lead managers. Standard Bank was the sole book-runner". Azode noted that Industrial and Commercial Bank of China (ICBC) won the ‘first global deal of the year award’ with its $21.9billion (N2.7trillion) initial public offer (IPO).
"It was a unanimous decision by the judges of The Banker that ICBC’s IPO on the Hong Kong and Shanghai stock exchanges is the world’s largest deal to date. The transaction was most spectacular for a bank that had more than 27 percent non-performing assets about two years ago.
Equally, South Africa’s $1.1 billion (N139.7billion) Kumba Resource Unbundling and Eyesizwe Consortium Black Economic Empowerment Transaction grabbed the ‘regional award for African continent’.
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Saturday, May 5, 2007
Total Nigeria records poor turnover, profit
May 2nd, 2007
Total Nigeria has recorded a no-too impressive turnover and profit after tax for the year ended December 31 2006. Audited results for the period show a turnover of N126.6 billion, slightly lower than the turnover of N126.72 billion recorded in the comparable period of 2005.
Ezenwa Onyeka
Similarly, the petroleum marketer achieved a profit after tax of N2.52 billion down from 30.19 per cent from N3.61 billion in 2005.
This poor performance has reflected on the company’s share price trend. A BusinessDAY study indicates that from November 15, 2004 to March 1, 2007, the company recorded a 4.68 percent drop in share price.
A breakdown shows that from N200.50 per share as at November 15, 2004, the share price fell to N190.00 on October 14, 2005. It went up briefly on July 14, 2006 as investors traded the shares at N192.51 per share. By January 5, 2007, it declined to N188.00 per share. It surged on January 9, 2007, trading at N95.00 per share and remained at the same level for January 11, 2007. By January 18, 2007, the bears took charge again as the share price crashed to N183.99 per share. On January 24, 2007, the equity was transacted at N180.50 per share. February 1, 2007, the share price stood at N185.00 per share. It climbed to N190.00 on February 7, 8 and 9, 2007 respectively. It however lost momentum and declined to N180.50 per share on February 14, 2007. On February 19, 2007, the share price was exchanged at N192.50 per share. For February 20, 2007, the share price of the equity was N189.50 per share. As at February 21, 2007, the share price went down again to N180.06 per share.
It was traded at the same price on February 22 and 23 and rallied on February 26 when it traded at N189.06 per share.
On February 27, investors speculated in the shares at N190.00 per share.
Total Nigeria fared better in earning per share rising from N7.83 in 2004 to N20.91 as at March 5, 2007.
The company paid a uniform dividend of N6.00 to holders of the stock in 2005, 2006, and as March 5, 2007.for 2004, it paid N5.50
A look at the Price Earning Ratio (PER) indicates 25.61 times for 2004, 22.12 times for 2005, and 18.08 times for 2006. As at march 5, 2007, the PER stood at 20.91 times.
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Total Nigeria has recorded a no-too impressive turnover and profit after tax for the year ended December 31 2006. Audited results for the period show a turnover of N126.6 billion, slightly lower than the turnover of N126.72 billion recorded in the comparable period of 2005.
Ezenwa Onyeka
Similarly, the petroleum marketer achieved a profit after tax of N2.52 billion down from 30.19 per cent from N3.61 billion in 2005.
This poor performance has reflected on the company’s share price trend. A BusinessDAY study indicates that from November 15, 2004 to March 1, 2007, the company recorded a 4.68 percent drop in share price.
A breakdown shows that from N200.50 per share as at November 15, 2004, the share price fell to N190.00 on October 14, 2005. It went up briefly on July 14, 2006 as investors traded the shares at N192.51 per share. By January 5, 2007, it declined to N188.00 per share. It surged on January 9, 2007, trading at N95.00 per share and remained at the same level for January 11, 2007. By January 18, 2007, the bears took charge again as the share price crashed to N183.99 per share. On January 24, 2007, the equity was transacted at N180.50 per share. February 1, 2007, the share price stood at N185.00 per share. It climbed to N190.00 on February 7, 8 and 9, 2007 respectively. It however lost momentum and declined to N180.50 per share on February 14, 2007. On February 19, 2007, the share price was exchanged at N192.50 per share. For February 20, 2007, the share price of the equity was N189.50 per share. As at February 21, 2007, the share price went down again to N180.06 per share.
It was traded at the same price on February 22 and 23 and rallied on February 26 when it traded at N189.06 per share.
On February 27, investors speculated in the shares at N190.00 per share.
Total Nigeria fared better in earning per share rising from N7.83 in 2004 to N20.91 as at March 5, 2007.
The company paid a uniform dividend of N6.00 to holders of the stock in 2005, 2006, and as March 5, 2007.for 2004, it paid N5.50
A look at the Price Earning Ratio (PER) indicates 25.61 times for 2004, 22.12 times for 2005, and 18.08 times for 2006. As at march 5, 2007, the PER stood at 20.91 times.
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Friday, May 4, 2007
Unilever Nigeria records 252.52% drop in net profits
The year has not been the best for Unilever Nigeria with the year’s highest at N18.78 and lowest at N12.30 for having added mere N1.21 to sell at N19.99.
MADUKA NWEKE
During the January trading summary the stock selling at N12.50 ended the month at N13.29 making a different of 79 kobo or 6.32 percent increase.
In February, it merely added 46 kobo or 3.46 percent from N13.29 to N13.75 while losing by 4.80 percent or 66 kobo to end at N13.09 from N13.75 recorded the previous month.
With a market price of N19.99 at a turnover of 7.991 million units valued at N162.5million which exchanged hands in 266 deals the stock closed the market on April 27, 2007.
The company, last week submitted its financial year ended December 31 results to the Nigerian Stock Exchange (NSE) which indicated a drop in its bottom line profit.
Analysing the result, it seem that the company may have surrendered to its competitors thereby losing more of its market, going by its N7.83 billion or 23.46 per cent plunge in sales volume. Turnover fell to N25.55 billion in the year 2006, as against the previous year’s N33.39 billion, just as the Robert Clarke-led management reported that the company swam into murky waters within the period with a loss after tax of N2.46 billion. In the year ended December 31, 2005, Unilever Nigeria posted a profit before tax of N2.28 billion.
Loss attributable to shareholders stood at N664.95 million, as against a profit after tax of N1.61 billion reported at the end of the previous year.
Most market watchers expressed fear going by the dwindling form the company degenerated to. For example, Unilever Nigeria reported a 31.18 per cent slump in its third quarter turnover, which stood at N16.93 billion from N24.60 billion in 2005. Also, the company reported a 265.52 per cent drop in net profits to a loss after tax of N2.40 billion from N1.45 billion.
According to management, Unilever’s problems began in the 2005 financial year when inadvertent bans on importation of key raw materials led to frequent supply disruptions. This was followed by dramatic changes in import duties with the overall impact causing costs to increase faster than income. The credit squeeze caused by the banking sector consolidation that ended in 2005 affected the company adversely, as it impacted local suppliers and key distributors. "Liquidity became the issue as distributors’ reduced ability to borrow and to sell out led to increased levels of inventory and debt. During this period, Unilever supported its distributors by extending additional credit which resulted in higher debtors and borrowings. At the end of the year, Unilever’s receivables grew by 258.0 percent to N9.4 billion while overdrafts increased by 354.8 percent to N8.6 billion," explains one analyst in his report.
The effect of the appointment of Bob Clarke who resumed on October 1, last year, to drive the restructuring of the company’s sliding fortunes is yet to be felt, going by the recent result. At the close of trading on Tuesday, the share price of Unilever Nigeria appreciated by 10 kobo, closing at N13.50.
Market capitalization took a N51.95 billion plunge at the close of trading on Tuesday at N5.757 trillion, just as the All-Share-Index at 40,663.76 points caved in by 366.94 basis points or 0.89 per cent, after Nestle Nigeria led others including Ecobank Transnational Incorporated, Benue Cement Company and 7-Up Bottling Company, among others on the laggards side.
Nestle lost by heavier N15.75 than Monday’s 992 kobo, both of which brings its cumulative loss since last week to N46.96. ETI dropped 600 kobo; BCC shed 251 kobo; 7-Up, 245 kobo; African Petroleum, 200 kobo; and UACN, 150 kobo. First Bank closed 140 kobo slimmer; West Africa Portland Company, 121 kobo; Flour Mills, 101 kobo; Cadbury Nigeria and Oando, 100 kobo; Nigerian Aviation Handling Company, 91 kobo; Guinness Nigeria, 85 kobo; Glaxosmithkline Consumer and Nigerian Breweries, 80 kobo; Union Dicon Salt, 72 kobo; Chevron Oil, 50 kobo; and IBTC-Chartered Bank, 49 kobo.
On the gainers’ side Total Nigeria took the lead, adding 200 kobo to Monday’s 198 kobo; followed by CAP’s 143 kobo; RT Briscoe chalked 134 kobo; and Cement Company of Northern Nigeria, 130 kobo. Dangote Sugar Refinery added 104 kobo, closing at N21.87; followed by Mobil Oil’s 100 kobo; Nigerian Bottling Company recovered 90 kobo from its 150 kobo loss on Monday; just as Cappa & D’Alberto grabbed 60 kobo. UACN Property Development Company lost 57 kobo and Nigerian-German Chemicals, 47 kobo.
Transaction volume fell by 57.68 million shares or 13.85 per cent as stockbrokers crossed 358.70 million units worth N3.96 billion in 9,678 deals, as against Monday’s 416.38 million shares valued at N3.82 billion in 9,065 deals.
Diamond Bank was the most active stock in the banking sub-sector, where 181.43 million units were traded for N2.67 billion in 5,225 deals. Diamond Bank’s 35.75 million shares changed hands for N382.59 million units in 37 deals, while investors staked N159.31 million for 31.63 million units of Fidelity Bank in 680 deals. In 675 deals, 25.00 million units of Guaranty Trust Bank were exchanged for N854.24 million, just as 18.67 million units of First City Monument Bank were traded in 349 deals for N157.74 million.
In the insurance sub-sector where 76.51 million units valued at N190.56 million in 823 deals, Mutual Benefits Assurance was the most sought after, with 40.02 million shares worth N72.84 million in 60 deals. In 287 deals, 15.66 million units Cornerstone Insurance were traded for N44.54 million in 287 deals.
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MADUKA NWEKE
During the January trading summary the stock selling at N12.50 ended the month at N13.29 making a different of 79 kobo or 6.32 percent increase.
In February, it merely added 46 kobo or 3.46 percent from N13.29 to N13.75 while losing by 4.80 percent or 66 kobo to end at N13.09 from N13.75 recorded the previous month.
With a market price of N19.99 at a turnover of 7.991 million units valued at N162.5million which exchanged hands in 266 deals the stock closed the market on April 27, 2007.
The company, last week submitted its financial year ended December 31 results to the Nigerian Stock Exchange (NSE) which indicated a drop in its bottom line profit.
Analysing the result, it seem that the company may have surrendered to its competitors thereby losing more of its market, going by its N7.83 billion or 23.46 per cent plunge in sales volume. Turnover fell to N25.55 billion in the year 2006, as against the previous year’s N33.39 billion, just as the Robert Clarke-led management reported that the company swam into murky waters within the period with a loss after tax of N2.46 billion. In the year ended December 31, 2005, Unilever Nigeria posted a profit before tax of N2.28 billion.
Loss attributable to shareholders stood at N664.95 million, as against a profit after tax of N1.61 billion reported at the end of the previous year.
Most market watchers expressed fear going by the dwindling form the company degenerated to. For example, Unilever Nigeria reported a 31.18 per cent slump in its third quarter turnover, which stood at N16.93 billion from N24.60 billion in 2005. Also, the company reported a 265.52 per cent drop in net profits to a loss after tax of N2.40 billion from N1.45 billion.
According to management, Unilever’s problems began in the 2005 financial year when inadvertent bans on importation of key raw materials led to frequent supply disruptions. This was followed by dramatic changes in import duties with the overall impact causing costs to increase faster than income. The credit squeeze caused by the banking sector consolidation that ended in 2005 affected the company adversely, as it impacted local suppliers and key distributors. "Liquidity became the issue as distributors’ reduced ability to borrow and to sell out led to increased levels of inventory and debt. During this period, Unilever supported its distributors by extending additional credit which resulted in higher debtors and borrowings. At the end of the year, Unilever’s receivables grew by 258.0 percent to N9.4 billion while overdrafts increased by 354.8 percent to N8.6 billion," explains one analyst in his report.
The effect of the appointment of Bob Clarke who resumed on October 1, last year, to drive the restructuring of the company’s sliding fortunes is yet to be felt, going by the recent result. At the close of trading on Tuesday, the share price of Unilever Nigeria appreciated by 10 kobo, closing at N13.50.
Market capitalization took a N51.95 billion plunge at the close of trading on Tuesday at N5.757 trillion, just as the All-Share-Index at 40,663.76 points caved in by 366.94 basis points or 0.89 per cent, after Nestle Nigeria led others including Ecobank Transnational Incorporated, Benue Cement Company and 7-Up Bottling Company, among others on the laggards side.
Nestle lost by heavier N15.75 than Monday’s 992 kobo, both of which brings its cumulative loss since last week to N46.96. ETI dropped 600 kobo; BCC shed 251 kobo; 7-Up, 245 kobo; African Petroleum, 200 kobo; and UACN, 150 kobo. First Bank closed 140 kobo slimmer; West Africa Portland Company, 121 kobo; Flour Mills, 101 kobo; Cadbury Nigeria and Oando, 100 kobo; Nigerian Aviation Handling Company, 91 kobo; Guinness Nigeria, 85 kobo; Glaxosmithkline Consumer and Nigerian Breweries, 80 kobo; Union Dicon Salt, 72 kobo; Chevron Oil, 50 kobo; and IBTC-Chartered Bank, 49 kobo.
On the gainers’ side Total Nigeria took the lead, adding 200 kobo to Monday’s 198 kobo; followed by CAP’s 143 kobo; RT Briscoe chalked 134 kobo; and Cement Company of Northern Nigeria, 130 kobo. Dangote Sugar Refinery added 104 kobo, closing at N21.87; followed by Mobil Oil’s 100 kobo; Nigerian Bottling Company recovered 90 kobo from its 150 kobo loss on Monday; just as Cappa & D’Alberto grabbed 60 kobo. UACN Property Development Company lost 57 kobo and Nigerian-German Chemicals, 47 kobo.
Transaction volume fell by 57.68 million shares or 13.85 per cent as stockbrokers crossed 358.70 million units worth N3.96 billion in 9,678 deals, as against Monday’s 416.38 million shares valued at N3.82 billion in 9,065 deals.
Diamond Bank was the most active stock in the banking sub-sector, where 181.43 million units were traded for N2.67 billion in 5,225 deals. Diamond Bank’s 35.75 million shares changed hands for N382.59 million units in 37 deals, while investors staked N159.31 million for 31.63 million units of Fidelity Bank in 680 deals. In 675 deals, 25.00 million units of Guaranty Trust Bank were exchanged for N854.24 million, just as 18.67 million units of First City Monument Bank were traded in 349 deals for N157.74 million.
In the insurance sub-sector where 76.51 million units valued at N190.56 million in 823 deals, Mutual Benefits Assurance was the most sought after, with 40.02 million shares worth N72.84 million in 60 deals. In 287 deals, 15.66 million units Cornerstone Insurance were traded for N44.54 million in 287 deals.
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Zenith Bank displaces Dangote Sugar as most capitalised company
Dangote Sugar Refinery Plc has lost the position of the most capitalised company quoted on the Nigerian Stock Exchange to Zenith Bank Plc.
DSR, which was listed in March at N18 per share, became the stock with the highest market capitalisation in April due to a consistent rise in its price.
The stock rose from N18 to N56, amounting to a market capitalisation of N560bn two weeks ago.
However, the bears swooped on the company in a bid to reap part of the capital growth. As a result, the high supply depressed it to close at N43.04 per share on Monday and translated into a capitalisation of N430bn.
This has made Zenith Bank, which had been occupying the second position since April 19, the company with the highest market capitalisation with N461bn.
Consequently, First Bank of Nigeria Plc, which occupied the number one position before DSR took over, fell to the third place with about N420bn.
The reduction in the capitalisation of DSR has been attributed to profit takers, while Zenith Bank�s positive outing was due to consistent demand for the stock.
The Managing Director, Mission Securities Limited, Mr. Samuel Oguntayo, had said that the rising profile of Zenith Bank was expected, given its nine months results and other positive developments.
The bank posted profit before tax of N17.64bn for the nine months ended March 2007, indicating a 59 per cent increase over the N11.08bn recorded for the same period in 2006. Profit after tax rose by 69 per cent from N8.86bn to N15bn.
The stock has recorded price gains of almost 150 per cent within the past year and is one of the most actively traded.
Since the public offer of early last year, Zenith has risen gradually from N16.90, to close at the current price, representing a capital appreciation of about 193 per cent.
Apart from the capital appreciation, investors who bought into Zenith Bank have also reaped from the dividend payout in line with the bank�s promise to pay N6.6bn dividend or N1.10 per share.
Analysts believe that the capital appreciation of almost 193 per cent and the impressive nine-month results were indicative of what to expect when the full year result is announced at the close of the bank�s financial year in June 2007.
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DSR, which was listed in March at N18 per share, became the stock with the highest market capitalisation in April due to a consistent rise in its price.
The stock rose from N18 to N56, amounting to a market capitalisation of N560bn two weeks ago.
However, the bears swooped on the company in a bid to reap part of the capital growth. As a result, the high supply depressed it to close at N43.04 per share on Monday and translated into a capitalisation of N430bn.
This has made Zenith Bank, which had been occupying the second position since April 19, the company with the highest market capitalisation with N461bn.
Consequently, First Bank of Nigeria Plc, which occupied the number one position before DSR took over, fell to the third place with about N420bn.
The reduction in the capitalisation of DSR has been attributed to profit takers, while Zenith Bank�s positive outing was due to consistent demand for the stock.
The Managing Director, Mission Securities Limited, Mr. Samuel Oguntayo, had said that the rising profile of Zenith Bank was expected, given its nine months results and other positive developments.
The bank posted profit before tax of N17.64bn for the nine months ended March 2007, indicating a 59 per cent increase over the N11.08bn recorded for the same period in 2006. Profit after tax rose by 69 per cent from N8.86bn to N15bn.
The stock has recorded price gains of almost 150 per cent within the past year and is one of the most actively traded.
Since the public offer of early last year, Zenith has risen gradually from N16.90, to close at the current price, representing a capital appreciation of about 193 per cent.
Apart from the capital appreciation, investors who bought into Zenith Bank have also reaped from the dividend payout in line with the bank�s promise to pay N6.6bn dividend or N1.10 per share.
Analysts believe that the capital appreciation of almost 193 per cent and the impressive nine-month results were indicative of what to expect when the full year result is announced at the close of the bank�s financial year in June 2007.
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Thursday, April 26, 2007
Investors stake N10b on equities in bullish trading
TRANSACTIONS on the floor of the Nigerian Stock Exchange (NSE) was on the up beat yesterday as 881.7 million shares valued at N9.6 billion changed hands, up from 484.7 million shares worth N6.6 billion on Tuesday
The indices of corporate performance also surged as the market capitalisation closed higher at N6.782 trillion while the All-share index closed at 47,262.30 points from 47,067.34 points yesterday.
The banking sub-sector was the most active in volume terms with 535.09 million shares valued at N6.8 billion.
It was followed by the insurance sub-sector with 136.3 million shares valued at N450.4 million while the food beverages and tobacco sub-sector took the third position with 14.4 million shares worth N687.5 million.
The banking sub-sector was buoyed by 311.2 million First City Monument Bank Plc's shares valued at N3.2 billion, while 76.4 million Standard Alliance Insurance shares and 10.6 million Dangote Sugar Refinery Plc shares valued at N238.3 million and N560.2 million, respectively enhanced the volume in the Insurance and Food Beverages and Tobacco sub-sectors.
Ecobank Transnational Incorporated led the bulls with 800 kobo appreciation to close at N173.00 per share, followed by Chevron Oil Nigeria Plc and Mobil Oil Nigeria Plc with 720 kobo and 614 kobo to close at N171.00 and N170.00.
Nigerian Aviation Handling Company Plc, Zenith Bank Plc and Conoil Nigeria Plc also gained 288 kobo, 235 kobo and 190 kobo to close at N60.55, N49.38 and N73.00 while Union Bank Nigeria Plc, Cement Company of Northern Nigerian Plc and RT Briscoe completed the top gainers' with 160 kobo, 145 kobo and 135 kobo to close at N34.60, N30.45 and N30.45 per share.
On the other hand, Nestle Nigeria Plc emerged the leader on the losers' chart with 1100 kobo loss to close at N229.00 per share.
Guinness Nigeria Plc, Dangote Sugar Refinery Plc, Ashaka Cement Company Plc and UACN Plc followed with 651 kobo, 278 kobo, 247 kobo and 170 kobo to close at N128.99, N52.82, N75.51 and N33.50.
Other losers' include Northern Nigerian Flour Mills Plc, UAC-Property Development Plc and West African Portland Company Plc with 154 kobo, 145 kobo and 139 kobo to close at N29.34, N27.55 and N65.50, respectively.
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The indices of corporate performance also surged as the market capitalisation closed higher at N6.782 trillion while the All-share index closed at 47,262.30 points from 47,067.34 points yesterday.
The banking sub-sector was the most active in volume terms with 535.09 million shares valued at N6.8 billion.
It was followed by the insurance sub-sector with 136.3 million shares valued at N450.4 million while the food beverages and tobacco sub-sector took the third position with 14.4 million shares worth N687.5 million.
The banking sub-sector was buoyed by 311.2 million First City Monument Bank Plc's shares valued at N3.2 billion, while 76.4 million Standard Alliance Insurance shares and 10.6 million Dangote Sugar Refinery Plc shares valued at N238.3 million and N560.2 million, respectively enhanced the volume in the Insurance and Food Beverages and Tobacco sub-sectors.
Ecobank Transnational Incorporated led the bulls with 800 kobo appreciation to close at N173.00 per share, followed by Chevron Oil Nigeria Plc and Mobil Oil Nigeria Plc with 720 kobo and 614 kobo to close at N171.00 and N170.00.
Nigerian Aviation Handling Company Plc, Zenith Bank Plc and Conoil Nigeria Plc also gained 288 kobo, 235 kobo and 190 kobo to close at N60.55, N49.38 and N73.00 while Union Bank Nigeria Plc, Cement Company of Northern Nigerian Plc and RT Briscoe completed the top gainers' with 160 kobo, 145 kobo and 135 kobo to close at N34.60, N30.45 and N30.45 per share.
On the other hand, Nestle Nigeria Plc emerged the leader on the losers' chart with 1100 kobo loss to close at N229.00 per share.
Guinness Nigeria Plc, Dangote Sugar Refinery Plc, Ashaka Cement Company Plc and UACN Plc followed with 651 kobo, 278 kobo, 247 kobo and 170 kobo to close at N128.99, N52.82, N75.51 and N33.50.
Other losers' include Northern Nigerian Flour Mills Plc, UAC-Property Development Plc and West African Portland Company Plc with 154 kobo, 145 kobo and 139 kobo to close at N29.34, N27.55 and N65.50, respectively.
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NSE index surpasses 2006 record
The stock market recorded another milestone on Tuesday as the Nigerian Stock Exchange All-Share Index hit a high 47,262.30, while the market capitalisation closed at N6.782bn.
Unprecedented price rallies by equities led to the new index, which was 42.4 per cent above this year’s opening level of 33,189.30.
Notably, the growth so far is higher than the 38 per cent recorded throughout 2006.
Market operators have predicted further rise in the market gauge, saying that expected improved corporate results from companies, inflow of more funds from pension fund administrators and foreign investors will sustain the bullish tempo of the market.
The market performance on Tuesday, was better than Monday’s as investors traded 811.69million shares worth N9.58bn in 11,557 deals, up from 484.7million shares valued N6.64billion transacted in 11,196 deals on Monday.
However, the banking sub-sector maintained its lead on the activity chart, accounting for over 66 per cent of the market turnover. Investors traded 535.09million shares worth N6.841bn in 6,311 deals.
The Insurance sector ranked second, recording 17 per cent of the total market, amounting to 134.28million shares valued at N450.39m exchanged in 819 deals.
Meanwhile, Ecobank Trans-national Incorporated led the price gainers with N8 to close at N173 per share, while Chevron Oil Nigeria Plc followed with N7.20 to close at N171 per share.
Meanwhile, Unilever Nigeria Plc on Tuesday announced a profit in the first quarter ended March 31, 2007 after a loss in 2007. Net profit stood at N300m as against a loss of N980m in the corresponding period of 2006.
The shares rose by N0.65 or 3.6 per cent to N17.95 per share.
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Unprecedented price rallies by equities led to the new index, which was 42.4 per cent above this year’s opening level of 33,189.30.
Notably, the growth so far is higher than the 38 per cent recorded throughout 2006.
Market operators have predicted further rise in the market gauge, saying that expected improved corporate results from companies, inflow of more funds from pension fund administrators and foreign investors will sustain the bullish tempo of the market.
The market performance on Tuesday, was better than Monday’s as investors traded 811.69million shares worth N9.58bn in 11,557 deals, up from 484.7million shares valued N6.64billion transacted in 11,196 deals on Monday.
However, the banking sub-sector maintained its lead on the activity chart, accounting for over 66 per cent of the market turnover. Investors traded 535.09million shares worth N6.841bn in 6,311 deals.
The Insurance sector ranked second, recording 17 per cent of the total market, amounting to 134.28million shares valued at N450.39m exchanged in 819 deals.
Meanwhile, Ecobank Trans-national Incorporated led the price gainers with N8 to close at N173 per share, while Chevron Oil Nigeria Plc followed with N7.20 to close at N171 per share.
Meanwhile, Unilever Nigeria Plc on Tuesday announced a profit in the first quarter ended March 31, 2007 after a loss in 2007. Net profit stood at N300m as against a loss of N980m in the corresponding period of 2006.
The shares rose by N0.65 or 3.6 per cent to N17.95 per share.
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Wednesday, April 25, 2007
Investors scramble for Oceanic Bank offer
As Oceanic Bank International Plc offer closes tomorrow the bank’s branches across Lagos State and all the stock participating broking outfits have been besieged by investors who are scrambling to get the shares. Daily Sun investigations reaveles that the last minute rush was as a result of anxiety over anticipated post-election violence and other sundry reasons.
According to one of the investors, Martins Ayodele “I had to wait till the last minute before investing because I kept the money for eventualities that may follow the last weekend elections and since as at today there was none, I decided to put the money to good use.”
Another investor, Bukola Amusu, said she had to borrow the money to invest from his cooperative society, and the cooperative could not give her the money until yesterday, a day to the end of the offer and that is the reason she is part of the late investors.
While another who simply called herself Franca, a marketer said, “Investment in shares is a costly decision and it took me this long to make up my mind to buy into the offer, don’t see anything bad in investing close to the end of the offer. The important thing is that I invested while the offer lasted.”
It will be recalled that the offer was extended by a week, which means it will effectively close tomorrow as against the earlier April 13, date. The extension was attributable to the spate of public holidays during the offer.
Feelers from the bank, however, suggest that investors have overwhelmingly received the offer, with analysts speculating an over subscription.
Chief Executive of Amyn Investments Limited, Mrs Hauwah Audu, attributed investors’ high interest in the offer to the bank’s high rate of returns.
She expressed satisfaction on the patronage level so far, noting that the offer is on the threshold of being grossly over subscribed.
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According to one of the investors, Martins Ayodele “I had to wait till the last minute before investing because I kept the money for eventualities that may follow the last weekend elections and since as at today there was none, I decided to put the money to good use.”
Another investor, Bukola Amusu, said she had to borrow the money to invest from his cooperative society, and the cooperative could not give her the money until yesterday, a day to the end of the offer and that is the reason she is part of the late investors.
While another who simply called herself Franca, a marketer said, “Investment in shares is a costly decision and it took me this long to make up my mind to buy into the offer, don’t see anything bad in investing close to the end of the offer. The important thing is that I invested while the offer lasted.”
It will be recalled that the offer was extended by a week, which means it will effectively close tomorrow as against the earlier April 13, date. The extension was attributable to the spate of public holidays during the offer.
Feelers from the bank, however, suggest that investors have overwhelmingly received the offer, with analysts speculating an over subscription.
Chief Executive of Amyn Investments Limited, Mrs Hauwah Audu, attributed investors’ high interest in the offer to the bank’s high rate of returns.
She expressed satisfaction on the patronage level so far, noting that the offer is on the threshold of being grossly over subscribed.
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Tuesday, April 24, 2007
Blue chip stocks surge indices on the Exchange
NIGERIAN Stock Exchange's All-share index rose further last week following major price gains by highly capitalised companies in the banking, insurance and food beverages and tobacco sub-sectors.
The market opened for four days, as Friday was declared work-free day by the Federal Government.
Specifically, the index appreciated by 2.6 per cent to close on Thursday at a record 47,093.27 points, while market capitalisation closed higher at N6.8 trillion.
The development was due to price gains by Guinness Nigeria Plc, which gained 2,199 kobo to close at N142.00 per share, while Nigerian Aviation Handling Company Plc followed at N54.93 per share.
Dangote Sugar Refinery Plc, UACN Property Development Company Plc, Zenith Bank Plc, National Salt Company Plc, African Petroleum Plc and Nigerian-German Chemicals Plc amongst others also gained 920 kobo, 494 kobo, 480 kobo, 294 kobo, 249 kobo and 227 kobo respectively.
On the other hand, Nestle Nigeria Plc led the price losers, down by 6,300 kobo to close at N235.00, while Ecobank Transnational Incorporated Plc also lost 1,500 kobo to close at N170.00 per share.
Oando Plc, Mobil Oil Nigeria Plc, Chevron Oil Nigeria Plc, Union Bank Nigeria Plc, UACN Plc, Conoil Plc, Nigerian Breweries Plc and Beta Glass Company Plc also lost 754 kobo, 449 kobo, 400 kobo, 389 kobo, 314 kobo, 300 kobo, 254 kobo and 237 kobo per share.
In all, 3.31 billion shares worth N46.35 billion changed hands last week, up from 1.4 billion shares valued at N18.3 billion exchanged the previous week.
There were no transactions in Federal Government Development Stocks, State Government Bonds and Industrial Loan/Preference Stocks sectors.
Transactions was highest in the banking sub-sector last week with 1.9 billion shares worth N30.44 billion exchanged in 23,849 deals.
Further review of the banking sub-sector indicated that the volume was buoyed by activity in the shares of Afribank Nigeria Plc, Fidelity Bank Plc, Intercontinental Bank Plc and Wema Bank Plc.
Trading in the shares of the four banks accounted for 929.11 million shares, representing 49.2 per cent of the sub-sector turnover.
The Insurance sub-sector was boosted by activity in the shares of Cornerstone Insurance Plc with a turnover of 659.3 million shares valued at N1.84 billion.
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The market opened for four days, as Friday was declared work-free day by the Federal Government.
Specifically, the index appreciated by 2.6 per cent to close on Thursday at a record 47,093.27 points, while market capitalisation closed higher at N6.8 trillion.
The development was due to price gains by Guinness Nigeria Plc, which gained 2,199 kobo to close at N142.00 per share, while Nigerian Aviation Handling Company Plc followed at N54.93 per share.
Dangote Sugar Refinery Plc, UACN Property Development Company Plc, Zenith Bank Plc, National Salt Company Plc, African Petroleum Plc and Nigerian-German Chemicals Plc amongst others also gained 920 kobo, 494 kobo, 480 kobo, 294 kobo, 249 kobo and 227 kobo respectively.
On the other hand, Nestle Nigeria Plc led the price losers, down by 6,300 kobo to close at N235.00, while Ecobank Transnational Incorporated Plc also lost 1,500 kobo to close at N170.00 per share.
Oando Plc, Mobil Oil Nigeria Plc, Chevron Oil Nigeria Plc, Union Bank Nigeria Plc, UACN Plc, Conoil Plc, Nigerian Breweries Plc and Beta Glass Company Plc also lost 754 kobo, 449 kobo, 400 kobo, 389 kobo, 314 kobo, 300 kobo, 254 kobo and 237 kobo per share.
In all, 3.31 billion shares worth N46.35 billion changed hands last week, up from 1.4 billion shares valued at N18.3 billion exchanged the previous week.
There were no transactions in Federal Government Development Stocks, State Government Bonds and Industrial Loan/Preference Stocks sectors.
Transactions was highest in the banking sub-sector last week with 1.9 billion shares worth N30.44 billion exchanged in 23,849 deals.
Further review of the banking sub-sector indicated that the volume was buoyed by activity in the shares of Afribank Nigeria Plc, Fidelity Bank Plc, Intercontinental Bank Plc and Wema Bank Plc.
Trading in the shares of the four banks accounted for 929.11 million shares, representing 49.2 per cent of the sub-sector turnover.
The Insurance sub-sector was boosted by activity in the shares of Cornerstone Insurance Plc with a turnover of 659.3 million shares valued at N1.84 billion.
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Friday, April 20, 2007
Wema Bank maintains growth in volume of transaction
The transactions of Wema Bank lately have shown that the bank is poised at making the difference in terms of returns on shareholders’ investments.
MADUKA NWEKE
The share price of the bank, which is rising has given reasons why the investors should smile with huge returns on investment.
As at April 11, 2007, the share price rose to N13.89, while pulling a total of 83,713,768-million shares worth N522.196-million exchanged in 703 deals.
The bank was recently appointed by Lagos State as one of the participating banks for its proposed scheme of payment of staff salary on-line.
David Adeagbo, head, corporate communications, said the appointment further attested to the operational efficiency of the bank in handling public sector accounts.
"Wema Bank, which is one of the five leading banks in the industry that set up Inter-switch Limited, has taken necessary steps to ensure a hitch free take off of the scheme scheduled for the end of this month."
He added that the bank was in a vantage position to make use of inter-switch facilities in addition to its newly acquired SUN FIRE E25K server and well-motivated workforce to render prompt on-line service to account holders.
Adeagbo also affirmed that the bank had put in place state-of-the-art facilities and up-to-date information technology to ensure that effective and efficient service were rendered to Lagos State public service workers.
He therefore urged workers in the Lagos State civil service to open accounts at any of its branches in the state for on-line payment of their salaries, pointing out that help (specially designated) desks had been set up to render effective services to them at all times.
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MADUKA NWEKE
The share price of the bank, which is rising has given reasons why the investors should smile with huge returns on investment.
As at April 11, 2007, the share price rose to N13.89, while pulling a total of 83,713,768-million shares worth N522.196-million exchanged in 703 deals.
The bank was recently appointed by Lagos State as one of the participating banks for its proposed scheme of payment of staff salary on-line.
David Adeagbo, head, corporate communications, said the appointment further attested to the operational efficiency of the bank in handling public sector accounts.
"Wema Bank, which is one of the five leading banks in the industry that set up Inter-switch Limited, has taken necessary steps to ensure a hitch free take off of the scheme scheduled for the end of this month."
He added that the bank was in a vantage position to make use of inter-switch facilities in addition to its newly acquired SUN FIRE E25K server and well-motivated workforce to render prompt on-line service to account holders.
Adeagbo also affirmed that the bank had put in place state-of-the-art facilities and up-to-date information technology to ensure that effective and efficient service were rendered to Lagos State public service workers.
He therefore urged workers in the Lagos State civil service to open accounts at any of its branches in the state for on-line payment of their salaries, pointing out that help (specially designated) desks had been set up to render effective services to them at all times.
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Afribank shareholders expectant, receive visa application aids
As the share price of Afribank rises to N11.51, investors in the bank are optimistic that the coming public offer in a forthnight will be good news as per dividends or bonus issue for shareholders.
MADUKA NWEKE
The public offer is coming at a time when the branch network of the bank has hit the 250 mark as a result of its merger with Assurance Bank. Afribank is improving service by introducing help lines that make payment easy for prospective applicants for passport and visa under the electronic payments of the Nigeria Immigration Service (NIS).
The help lines were set up to complement the electronic payments system recently introduced by the NIS for its services.
This facility enables visa and passport applicants to have on-line access to Afribank visa and passport desks and facilitate their bookings. Prospective applicants (fresh or renewal) can make enquiries through the help lines available 24/7.
Management of the bank says the help lines became necessary to save time for visa and passport applicants; to promote personal and convenient banking, customer relationship management and total quality service. Visa and passport applicants are encouraged to direct their enquiries to the help lines.
"We assure them of prompt response, privacy and open seven days a week," the bank adds.
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MADUKA NWEKE
The public offer is coming at a time when the branch network of the bank has hit the 250 mark as a result of its merger with Assurance Bank. Afribank is improving service by introducing help lines that make payment easy for prospective applicants for passport and visa under the electronic payments of the Nigeria Immigration Service (NIS).
The help lines were set up to complement the electronic payments system recently introduced by the NIS for its services.
This facility enables visa and passport applicants to have on-line access to Afribank visa and passport desks and facilitate their bookings. Prospective applicants (fresh or renewal) can make enquiries through the help lines available 24/7.
Management of the bank says the help lines became necessary to save time for visa and passport applicants; to promote personal and convenient banking, customer relationship management and total quality service. Visa and passport applicants are encouraged to direct their enquiries to the help lines.
"We assure them of prompt response, privacy and open seven days a week," the bank adds.
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Tuesday, April 17, 2007
Dangote Sugar Refinery commences export in 2008
By Ogbuotobo Chuks
With few weeks after being listed on the Nigerian stock market, paying shareholders a dividend of N1.15 as against the N1.00 it stated in its IPO and acheiving a capital appreciation of over 100 percent in 3 weeks, the management of Dangote Sugar Refinery has concluded plans to commence exportation of sugar in 2008.
The chairman of the company disclosed this at the 1st Annual eneral Meeting(AGM) of the company in Lagos. He also affirmed that the daily production which currently stands at 4,000 tonnes would be increased to 7,500 tonnes to meet customers demand.
In a show of sound management principles, the chairman also said that the company would commence payment of quaterly dividends beginning in April 2006. Consequently, two dividends will be paid in the month of April 2007.
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Monday, April 16, 2007
Nairakobo forum (a newly nigeria investment forum)
Hello everybody, I discovered a lot of Nigerian home and abroad are willing to invest in Nigeria most especially in stocks, but they are lack of right information on how to go about it. Most of my friends in USA always asked me so many question about investment in Nigeria.
Some would asked me where do i buy the shares from, some would asked how much is my gain on one unit, some would ask you how much is the stock self, some would ask you which company is the best to buy from and some would tell you they cant use their money to buy shares, why this, because they are lack of right information.
This is why nairakobo forum was launched. This forum was opened for the public to be fully aware of the Nigeria Stock Market, Business Mnagement, Finding Investment Capital, Business Ideas and Personal Finance Planning.
This forum is to intimate the public with grass root Investment opportunities.
I'm now announcing to all Nigerian home and abroad, who are willing to invest in companies shares and business to quickly join nairakobo forum to become member and started posting thread today. The registration is free. my own username is Babatunde
nairakobo forum is an investor's friend.
Once again, you are welcome to nairakobo forum
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Some would asked me where do i buy the shares from, some would asked how much is my gain on one unit, some would ask you how much is the stock self, some would ask you which company is the best to buy from and some would tell you they cant use their money to buy shares, why this, because they are lack of right information.
This is why nairakobo forum was launched. This forum was opened for the public to be fully aware of the Nigeria Stock Market, Business Mnagement, Finding Investment Capital, Business Ideas and Personal Finance Planning.
This forum is to intimate the public with grass root Investment opportunities.
I'm now announcing to all Nigerian home and abroad, who are willing to invest in companies shares and business to quickly join nairakobo forum to become member and started posting thread today. The registration is free. my own username is Babatunde
nairakobo forum is an investor's friend.
Once again, you are welcome to nairakobo forum
see you there.....
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