Author Topic: Sterling Bank Unveils Right Issue, To Raise N12.4b  (Read 2888 times)

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Sterling Bank Unveils Right Issue, To Raise N12.4b
« on: June 19, 2013, 08:42:36 AM »
In response to the call by its shareholders at the bank?s annual general meeting in May, the board of  Sterling Bank has officially unveiled a right issue of 5.888, 949,162 ordinary shares of 50 kobo each at N2.12 per share. The right issue is on the basis of three new ordinary shares for every eight ordinary shares of 50 kobo  each held by its shareholders as at May 20.2013.

The unveiling was at the bank?s completion board meeting held in Lagos on Monday. The total proceed expected from the right issue is N12.484 billion; while the opening date is June 24, 2013 with the closure date fixed at July 31, 2013.

The proceeds of the right issue, according to the Chairman of the Board, Alhaji  Sulaiman Adebola Adegunwa, will be utilised in funding the growth of the bank?s loans, branch expansion, modernisation, information technology and infrastructure upgrade.

Parties to the issue are Sterling Capital as the issuing house, Ernst &Young as auditors, Banwo & Ighodalo as solicitors to the issue, Cardinal Securities Limited as stockbrokers, Sterling Registrar Limited as Registrar; while receiving banker to the issue is Skye Bank.

Managing Director of the bank, Mr. Yemi Adeola, said shareholders of the bank have been pushing for the right issue in the last 12 months and that the call was reiterated at the 2012 annual general meeting which took place in May.

?His words: ?Our shareholders have been extremely happy with us and they have been pushing for the past 12 months to do a right issue and that they will subscribe. In the results we have delivered in the past three years, we have been paying dividend. At the last AGM, we doubled the dividend and that the return on equity (ROE) has been impressive.

?This bank was a tiny bank in 2006 and today we are a top tier-two bank in Nigeria. The owners of the bank are very happy and excited to want to put more money because they know that by putting more money, we will be doing more business and we will make more money for?.

On the plan of the bank for the future, Adeola said the bank is not thinking of expanding outside the country for now as it is currently looking at every opportunity to expand the bank?s services to as many places in Nigeria as possible.

?Offshore is not on the radar for now because we appreciate that the Nigerian market is huge and it is important to have your footprint all over Nigeria and capture a decent percentage of the market share before you start thinking of offshore?, he added.

Speaking on the shareholders? attraction to issue, Adeola said:  ?They have seen the numbers, they have seen our quarterly results and they have seen the dividend we are paying and for this first quarter of this year, the return on equity was 23 per cent. Our special attraction is that any shareholders who is buying will have the benefit of buying a share that is currently trading at N2.90 per share at N2.12 per share and as a result of this, they start making money from the first day they buy into the right issue.

He, was however, confident that the profit after tax forecast for the next four years of N11.857 billion in 2013, N15.096 billion in 2014, N22.283 billion in 2015 and N35.195 billion in 2016 will be met by the bank considering the impressive 2013 first quarter result of the bank.

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Sterling Bank Unveils Right Issue, To Raise N12.4b
« on: June 19, 2013, 08:42:36 AM »

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