Funke Osibodu, chief executive officer of Ecobank Nigeria, told investors in Lagos on Thursday that purchase of the bank's shares in the ongoing offer will yeild fruitfull results, pointing out that N1 million investment in the shares of the bank in 1989-the last time Ecobank sold shares to the public-is now worth more than N266 million, representing 26,500 per cent capital appreciation in 16 years.
A statement from the bank said she explained that the huge growth potential of the Ecobank stock explains why it is actively traded over the counter, though is it not yet listed. She said the bank's shares will be listed after the current offer.
Osibodu, who was speaking at investor's forum of the bank in Lagos, assured potential shareholders in the bank that their investment will earn dividend in the 2005 financial year, even though the financial year has just four months to come to an end.
Ecobank is offering for public subscription 4.8 billion ordinary shares of 50 kobo each at N3.20 per share, an offer price described as the best from any bank in the Ecobank peer group. The offer, which closes on August 19, is expected to bring N15.36 billion into the bank's coffers.
The bank plans to invest the money raised from the offer in information technology upgrade, branch expansion, the deepening of its capital base, and the enhancement of service quality and delivery in institutional banking, investment banking, consumer banking, fund management, electronic banking, insurance services and mortgage banking.
http://allafrica.com/stories/200508151046.html