Posts tagged: Shares

Bank PHB Share Certificate In The Mail

authordonne4real | June 6, 2008

For those who partook of the Bank PHB offer, you can expect your share certificates in the mail anytime soon. Here is the story as published by Proshare NG:

First Registrar dispatches Bank PHB 2007 IPO share certificate

First Registrars Nigeria Limited, Registrars to the PlatinumHabib Bank Plc (BANK PHB) 2007 Initial Public Offer (IPO) last week dispatched share certificates to investors who took part in the offer. Ezekiel Oni, Head of Management Services of First Registrars confirmed this to Proshare NI today in Lagos Nigeria.

“We have already dispatched the BANK PHB 2007 share certificates since last week” Oni said.

However, this was contrary to what sources affirmed to Proshare NI when it visited the Corporate Affairs office of the bank situated at Keffi Street off Awolowo Road in the South West Ikoyi area of Lagos to ascertain the true situation from those in-charge as regards the issue of share certificates of the bank’s offer.

One of the sources at BANK PHB affirmed that the bank has earlier this week sent the share certificates to First Registrars for onward dispatch to investors.

Another source further confirmed to Proshare NI that share certificates of investors who furnished their Central Securities and Clearing System (CSCS) accounts had been lodged in with the CSCS last week.

As at the time of filling in this report, Proshare NI could not get clarification on the issue of return money as regards the offer.

All these are coming on the heels of investors’ complaints to Proshare NI that they have not received either their share certificates concerning the offer or the return money for non-allotment of shares they required from the bank.

In November 2007 BANK PHB sought to raise fresh funds of N85 billion from the Nigerian Capital Market by offering to the Nigerian investing public 5.0 billion Ordinary Shares of 50 Kobo each at N17.00 per share.

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Access Bank’s Share Reconstruction

authordonne4real | July 25, 2007

I must admit, ever since I heard about Access Bank’s stock split late last year, I have been apprehensive about their recent return to the stock market to purchase more shares. But the article below on the ProShare blog provides some explanation on the benefits of the reconstruction. It seems that those who held on to their stock after the adjustment have actually seen an appreciation in their holdings. You can Access Bank Analyst Report. Read the article for yourself:

Pre-reconstruction in October 2006, Access Bank had approximately 13.96 billion shares outstanding and the stock was trading at approximately N3.00k. Upon completion of the 1 for 2 share reconstruction, the total number of outstanding shares decreased to $6.98 billion at an adjusted post reconstruction price of N5.98k.

To illustrate, an investor with 10,000 shares pre-construction, had their holdings adjusted to 5,000 shares, but at exactly the same valuation (See schedule in attached report above). The share reconstruction and the subsequent value of investors’ shares have been confusing to many investors, because the impact of the reverse split on investor’s holdings was not properly explained. Majority of Access Bank’s investors are unhappy about the reverse split and the run up in price prior to the announcement of the secondary offering.

However comparatively, it appears that the share prices of other banks that recently completed their secondary offerings surged shortly before and after the announcement of their intentions to raise new funds from the capital markets.The surge in the prices of these shares might have been an intentional mop up by the institutions, or by smart investors buying shares ahead of the offering to enable them sell into post offering up swing.

However, a review of the value of investors portfolio post reconstruction through the technical suspension by NSE in the trading of Access Bank shares on May 18, 2007, indicate that investors who held on to their shares post reconstruction experienced a significant appreciation in the value of their portfolio.

ILLUSTRATION:An investor with 10,000 shares pre-split at N3 paid N30, 000 (10,000 x 3 = N30, 000) originally for the shares. After the 1 for 2 reverse split, the investor received 5,000 share at N6 still valued at N30, 000 (5,000 shares x N6 = 30,000). If the investor did not sell the 5,000 shares received from the split, the shares are worth N96, 640, a gain of N66, 600 or 222% as of May 18, 2007. Even at the discounted offering price of N14.90, the portfolio gain is N44, 500 or 148.3% post reconstruction as indicated in the schedule in the report above.

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