Before anyone responds, I'm well aware that the PO's prospectus says PO buyers wouldn't benefit from bonus/dividend of the current year. However, if investors bought @ N33, supposedly a discount at the time to market price of N40.40, the stock split is finally applied and the same price drops to around the 30s region, where do new investors stand? Haven't they been short changed?

K2:

Before anyone responds, I'm well aware that the PO's prospectus says PO buyers wouldn't benefit from bonus/dividend of the current year. However, if investors bought @ N33, supposedly a discount at the time to market price of N40.40, the stock split is finally applied and the same price drops to around the 30s region, where do new investors stand? Haven't they been short changed?

A split of 1 for 6 on FBN should not drop the price to the 30's region.
If the bank gave bonus to po buyers, the value of FBN as a good investment would utterly have been destroyed. There will be too many shares around and inherent value and eps will be grossly reduced.

@ Temmie10,
You don reach here already?

@ K2,
If the split took place today, the price would come down N46. You'd still be up ~N13 from the PO or N15 from the rights. Still not a bad return but not the 80-100% you may have been hoping for.

I thought it was a smart move by FBN to dissuade the PO group from dumping shares upon receipt.

Dont be shaken about first bank, its their nature to give out bonuses and with the current CBN gorvernor, all banking stocks are running towards $1 per share. prices of good stocks usually go up and dowm so even if the price goes down its no course for alarm just be alittle bit patient, it will surprise you.