Investors Await Intercontinental Bank's Shares
There are indications that investors have began to position for the impending public offer of Intercontinental Bank Plc. The news about the bank's plans to come to the capital market to raise funds has raised the expectations of investors.
The bank is expected to unveil its public offer this month in a bid to raise about N15 billion.
Already investment analysts have predicted that the offer would be a huge success as most discerning investors would want to consolidate their investments in the big league of the Nigerian banking industry where Intercontinental is a major player.
"This is one of the stocks many investors are waiting to grab. Any serious investor knows that his portfolio is incomplete without a share of the most diversified and well-managed bank in the land" one of the analysts said.
THISDAY checks showed that stockbrokers are also waiting with bated breath for the Intercontinental Bank shares.
Analysts disclosed that what the bank has demonstrated impressive performance in the last 15 years.
"In the past 15 years the bank has recorded consistent impressive growth in all performance indices," the analyst said.
For instance, its gross earnings have grown from a mere N0.5 billion in 1989 to N15.1 billion in 2003. This represents a growth of over 30,968.7 per cent.
Profit before tax also recorded a whopping 18,454.6 per cent growth to N3.4 billion from N0.02 billion for the period under review.
Similarly, the bank's asset base rose by 28,859.3 per cent from N0.30 billion to N71.4 billion, while deposit base jumped from N0.18 billion to N50.2 billion in the period under review.
The bank has also made one of the highest returns on investment in the industry in the last 15 years.
It has paid dividend consistently for the past 15 years, with a record eight times bonus offer within the same period.
This means that an investor that bought 100,000 shares in 1989 has not only collected N21.7 million in dividend payment but also received a whopping 13,611,138.33 shares though bonus issue.
Addressing stakeholders recently in his office in Lagos, Akingbola said investors stood to reap even better returns on their investment after the consolidation of the bank with members of the group.
According to him, the post-consolidation Intercontinental Bank Group is expected to have one of the largest on-line network and capital base.
The Intercontinental boss said after the successful conclusion of the expansion programme by all the individual member banks, "we shall integrate our total strength to roll out a banking institution large enough to alter the structure of competition in the industry."
As at December 2003, the group's gross earnings stood at N33.3 billion, with total asset of N152.0 billion. During the period, the group made a profit before tax of N6.4 billion, while total deposit stood at N1 03.8 billion.
By the end of the current financial year, the group's total earning is estimated to hit N45 billion, while total asset is expected to rise to N200 billion. The group also hopes to grow its deposit to N160 billion, with shareholders' fund climbing to over N26 billion.
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