Investors Declare Confidence in Zenith Bank's IPO
By Uche Obike and Tunyosola Ayansiji
Prominent Nigerian investors and businessmen yesterday in Lagos expressed confidence in the Initial Public Offer (IPO) of Zenith Bank Plc.
The bank's Public Offer of 800 million ordinary shares of 50 kobo each at N10.90 per share opened this morning for both existing and prospective investors to take advantage of the wonderful.
Speaking yesterday during the bank's "Investors Forum" Mr. Akintola Williams, doyen of the accounting profession in Nigeria said that "Zenith Bank has proved to be a bank for today and a bank for the future. It has modernised the banking system."
In his comment, Mr. Atedo Peterside, Managing Director/Chief Executive of Investment Banking and Trust Company Limited (IBTC) noted that "we are confident in the Offer and wish that Zenith Bank allowed us to underwrite a portion of the issue on Offer. He explained further that Zenith Bank choose not to have the issue underwritten because those in the bank are confident that the Offer will be over-subscribed.
Peterside admitted that has been involved in many IPOs, adding that Zenith Bank's IPO is the fast he has seen in his life. "We were appointed on April 19, 2004, and by June 17, 2004, we have received all the approvals as required. Less than two months."
He recommended the shares to anybody that is interesting in making money.
For the President of Dangote Group of Companies, Alhaji Aliko Dangote:" I don's buy shares, but I am going to buy as much as I can of Zenith Bank's shares."
He disclosed that he has been a very active customer of the bank and has had a lot of transactions with Zenith Bank in the past ten years or so. "And, I have never, never been disappointed," he said. He regretted that the time given to him to speak would not be enough to talk about the bank. However, he expressed confidence that the projections made by Ovia will beat those targets and even surpass them.
Chief Richard Akinjide, former Attorney General and Minister of Justice, observed that the quality of service offered by Zenith Bank in and outside Nigeria can be equated with the best banks of the world.
He declared that "Zenith Bank is a success that enhances not only the banking industry in Nigeria, but also the global financial world."
Consequently, he assured that "I am going to buy a substantial shares of the bank. Zenith Bank is a good success."
The Chairman of African Petroleum Plc (AP), Chief Peter Okocha disclosed that he was at the forum to celebrate Zenith Bank's success. He commended the vision of the bank to go public. "Zenith Bank is a local international bank that is everywhere. We will buy its shares and continue to support the bank," he said.
Chief Wole Adeosun, former Managing Director of First Bank of Nigeria Plc declared that "to understand Zenith Bank's success, look at the balance sheet. Whatever, I have, I am going to put in this bank."
He commended Ovia for running a bank that has the lowest non-performing loan portfolio. He said he has confidence in the bank because of its high quality of service delivery to the customers.
Meanwhile, Mr. Tola Mobolorin, Chief Executive of Capital Bankcorp Limited and former President of Chartered Institute of Stockbrokers and Mr. Henry Olayemi, the current President of Chartered Institute of Stockbroker expressed very strong confidence in the Offer, saying the Zenith Bank's shares is a good buy.
Addressing the investors, the Managing Director/Chief Executive of Zenith Bank, Mr. Jim Ovia said that his bank's "shares are the cheapest thing you can ever buy today. Now, why should we buy zenith shares? We are arguably the third largest bank in Nigeria by total assets. The bank's shareholders' fund is N16.7 billion. There are only two banks in Nigeria today that has shareholders' fund probably above N16.7 billion. So these are the compelling reasons why we must go for zenith and the are the compelling reasons why the price of N10.90k is a good buy."
Ovia added that "Our people are our greatest friends, they are eminently qualified. they are the ones that bring the figures out. We focus on the strength of our people. Agusto and company rated zenith bank AAA in 1999, 2000, 2001, 2002 and 2003 consistently tripple As and for 5 years. No institution has been rated Tripple As in 5 years . So, if we can take good care of government money, it means we can do the same with investors' money."
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