Posted by By WALE ALABI on
Investors, who missed out on the last public offering of Intercontinental Bank have another chance to acquire the shares of the blue chip bank as its long awaited public offering opens. The bank is offering a total of 2,272681659 shares to investors through a combination of public offer and rights issue.
Investors, who missed out on the last public offering of Intercontinental Bank have another chance to acquire the shares of the blue chip bank as its long awaited public offering opens.
The bank is offering a total of 2,272681659 shares to investors through a combination of public offer and rights issue.
A breakdown of the offer shows that right issue, which is only for existing shareholders accounts for 1.5 billion ordinary shares, while the general public will scramble for about 740.7 million, shares.
The bank is offering the two grades of shares at a uniform discounted price of N13.50. The current market price of the share at the Nigerian Stock Exchange is N16.50.
Speaking at the Completion Board Meeting in Lagos recently, the bank's Chief Executive, Dr Akingbola, said the public sale of its shares present another opportunity for existing shareholders to consolidate their investment in the bank, while offering new investors a good opportunity to share in the impressive returns on investment the bank has consistently delivered since inception.
The bank is on threshold of recording a phenomenal growth that will make its record-breaking performance in the last 15 years pale into insignificance as it invites Nigerians to share in its public offer, he said.
Intercontinental Bank boasts of one of the highest returns on investment in the industry in the last 15 years. It has consistently paid dividend to its shareholders and issued bonus shares six times within the same period. In addition, shareholders of the bank have continued to enjoy huge capital gain on the bank shares. Between 2004 and 2006 alone, the shares have recorded a capital gain of over 165 per cent.
Investors have raked in returns of over 106,000 percent between 1989 and 2004 and about 230 percent returns in the last 20 months. The public offer and rights issue will close on November 7, 2006.
The bank's chairman, Dr. Raymond Obieri, said proceeds from the public offer would be used to finance the bank's massive expansion drive and upgrading of its information and communication technology system. The fresh funds will also help buoy the bank's working capital.
Intercontinental bank recently acquired the latest edition of the Flexcube software. The new system, which is being deployed in its over 185 branches and head office, will significantly enhance the bank's service delivery.