News Column

Diamond Bank to Raise N50.37 Billion Through Rights Issue

July 31, 2014

Chijioke Nelson

Diamond Bank Plc may have concluded arrangements for a rights issue of N50.7 billion, following the approval of shareholders at its yearly general meeting.

Specifically, over 8.6 billion ordinary shares of 50 kobo each will be offered to the lender's shareholders in the ratio of three new ordinary shares for every five ordinary shares held as at 13 June, 2014, at =5.80 per share.

The final approvals for the registration and listing of the shares, from the Securities and Exchange Commission and The Nigerian Stock Exchange respectively are expected imminently.

However, the rights issue, which expectedly, may have commenced as at yesterday, will close on August 26, 2014.

Stanbic IBTC Capital Limited is the Lead Issuing House, while FBN Capital Limited serves as the Joint Issuing House to the rights issue.

At the signing ceremony recently, the Group Managing Director of Diamond Bank, Dr. Alex Otti, disclosed that the net proceeds of the rights issue would be applied towards the development of the bank's Information Technology infrastructure, working capital support and the expansion and refurbishment of its business locations.

Furthermore, the successful outcome of the rights issue would improve Diamond Bank's tier 1 capital, thereby positioning it to take on bigger opportunities in the sector and ultimately increasing value for shareholders.

The Head of Stanbic IBTC's Equity Capital Markets, Mrs. Oyinda Akinyemi, commended the management of Diamond Bank for their efforts towards ensuring that the financial institution maintained a leading position in the sector.

She also urged the bank's shareholders to seize the opportunity of the rights issue to show their confidence in the lender's potential for future growth.

Also, the Executive Director, FBN Capital, Taiwo Okeowo, reiterated that the bank has considerable potential for long term growth, given its market share of the growing retail banking sector and is a good investment opportunity for shareholders.

The rights circular for the issue, which contains a provisional allotment letter and the application/renunciation form, may have been dispatched directly to each shareholder before the opening.

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Source: AllAfrica

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