Daily Independent Online.
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Thursday, June 17, 2004.
FCMB says GTB offer will be over-subscribed
By Esan Sunday
Snr. Finance Correspondent, Lagos
As Guaranty Trust Bank (GTB) concludes plans to put
one billion shares at N10.60 per shares on the stock shelf, First City Monument
Bank (FCMB), which capital market arms, FCMB Capital Markets, acts as the
issuing house to the offer, has predicted an over- subscription of the shares.
FCMB said GTB has proved over the years that it has
what it takes to be the leading bank in the country and that it cares specially
for its shareholders, as it has consistently demonstrated this by paying
dividend twice yearly.
The bank expressed the belief that the level of
over-subscription of the offer may be unprecedented in the banking industry.
The bank, through the offer, which opens on June 30
and closes on July 28, this year, said it would raise N10.6 billion, which
would be used to accelerate its branch and regional programmes, enhance its
information technology infrastructure and provide sufficient working capital to
meet its immediate and foreseeable requirements.
While about 30 per cent of the shares on offer would
be allotted to portfolio investors, the bank stated that in the event of
over-subscription, the excess monies would be capitalised and additional shares
allotted to the extent that can be accommodated by the bank’s un-issued
share capital.
Stating that the applications for the shares must be
for a minimum of 500 shares and in multiples of 250 shares thereafter, the
offer bronchure added that all application monies would be retained in a separate account with the
First City Monument Bank Limited and Magnum Bank, pending allotment. If,
however, any application is not accepted, or accepted for fewer shares than the
number applied for, it stated that a cheque for the full amount or the balance,
as the case may be, paid on application, will be returned through the
registered post at the applicant’s risk within five working days of
allotment. It further assured that a share certificate in respect of shares
allotted will also be sent by registered post at the applicant’s risk
within 15 working days of allotment.
Meanwhile, GTB has predicted that between 2005 and
2006, it would conservatively pay a dividend of N7.5 billion to investors, translating to N1.50, 70 kobo
in year 2005 and 80 kobo in 2006.
The bank paid a dividend of 70 kobo this year.
Meanwhile, analysts have predicted that the bank
might possibly exceed its dividend targets, as it has the capacity to pay more
and that the figure released to the public is just a conservative one and not
actual. The bank also predicted that it intends to gross a total of N21.96
billion in 2005 and N26.7 billion in 2006.
It also projected a profit before tax of N5.9 billion
and N6.8 billion respectively, as against a profit before tax of N5.2 billion
made this year.
GTB was incorporated in July 20,1990, as a private
limited liability company and became a quoted public limited liability company
on September 9, 1996, following the listing of its shares by introduction on
the Nigerian Stock Exchange (NSE).
On February 5, 2001, the bank was issued a universal
banking licence and through its successful initial public offer in 2001, it was
able to raise money in excess of
N2.5 billion from the capital market. Besides, its shares have become one of
the most actively traded on the floor of the NSE.
