Investors move to beat First Inland’s offer deadline

Wadada had during his endorsement of the Bank’s IPO at an Investors’ forum in Abuja noted that the House was not against fresh or initial public offerings but only frowned at banks raising money from the capital market frequently or more than once.

According to him, "we are not against banks coming to the capital market for initial public offerings but against those who have made it a frequent habit of coming to the market to raise funds."

The Bank said it has witnessed long queues at its branches nationwide by investors and those willing to take up their rights issues, an indication that the management of the bank might need to prepare for a possible over subscription.

Earlier in his remarks, the managing director and chief executive of the Bank, Okey Nwosu, had told the investors which also include two state governors from Bauchi and Zamfara that the bank is offering a total of N100 billion worth of shares through preferential, rights and public offers to the public.

The offer is coming at a discounted price of N3.80 (for rights issue) and N4.80 (for public offer) per share as it was pegged at N13.30 by the Nigerian Stock Exchange (NSE) when it got wind of the bank’s decision to embark on the offer.

The bank noted that, in the event of oversubscription, the shares shall be allotted to shareholders in an amount not exceeding the bank’s un-issued share capital, subject to the approval of the bank’s board of directors and the regulatory absorption limit of 25 percent of the oversubscription. The supplementary proceed would be utilised for the same purpose.

"If you look at the history of First Inland Bank, you will discover that the bank has continued to grow from strength to strength. The bank recently recorded a profit that was more than what the individual banks (First Atlantic Bank Plc, Inland Bank Plc, NUB International Bank and IMB International Bank Plc) in the group ever made" Wale Godo, an analyst said.

He noted that, "First Inland Bank is a bank that is going places. It has given good returns to shareholders. It is a bank to invest in. We have great passion for the offer and we will give it all the necessary support. We call on our colleagues, professional parties, the investing public, particularly stockbrokers to support this offer so that it can be another landslide.

The Bank, according to its officials, has played a leading role in a substantial number of transactions including telecommunications, oil and gas, hospitality and infrastructures development through its thriving partnership with top foreign and local financial institutions.

The Bank had among others secured a 100 per cent increase in its line of credit from the Africa Export-Import (Afreximbank), based in Cairo Egypt . These laudable developments signify the increasing and growing confidence in the Bank by the foreign institutions.

"It is strongly committed to the development of the Nigerian financial markets by accessing offshore lines of credit and making such available to its valued customers, which will significantly enhance the country’s economic growth, deepen credit creation, enable difficult deals to be structured and ensure a sophisticated and developed market".

They explained that the Bank’s enhanced financial position provides it with the ability to handle large ticket transactions while offering more diversified services to customers. It also has an enhanced scope for accessing international markets and participating in cross-border transactions.