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Beware Of Dubious Private Placements - Business - Nairaland

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Private Placements / Private Placements / Private Placements,is Anyone Available Presently?pls Drop The News Here ! (2) (3) (4)

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Beware Of Dubious Private Placements by Gettolove(m): 2:13pm On Jun 13, 2008
You must have been approached by some marketers persuading you to buy one private placement or the other. Ideally, private placement is an arrangement where by a privately or publicly owned but not listed company sells parts of it shares to a few members of the public in its bid to increase its capital base and may or may not eventually be listed ( e.g. MTN nigeria) on the stock exchange.

Although the arrangement is a good one but we all need to be wary of some of them because of absence of regulations for private placemnts in the country. A lot of Nigerians have their monies tied in the hands of such companies. ApartĀ  from tying down your money, not all them will meet the listing requiremnts of the Nigerian Stock Exchange.

Some of these companies can't even show you their trading results which is key for listing on the floor.( NOTE: A company must have traded for at least 5 years before it can be listed on the 1st tier and for 3 years on the 2nd tier of the exchange.
Re: Beware Of Dubious Private Placements by tufe(m): 4:40pm On Jun 13, 2008
Good piece of info. thanx a lot.
Re: Beware Of Dubious Private Placements by abujabooks(f): 3:30pm On Jun 14, 2008
You are right. Thanks.
Re: Beware Of Dubious Private Placements by Gettolove(m): 4:29pm On Jun 18, 2008
It is important to add that if anyone has subscribed to a P.P. and you are sceptical about their prospect or you feel it has taken too long a time for them to be listed, I think you can approach such a company to sign a Memorandum of understanding which will temporarily ensure your stake in the company. This may be neccessary given the fact that the regulatory authorities may not be convinced that all requirements have been met by the prospecting company.

The Memorandum of understanding i am not sure,would state the mechanism via which you would pre-emptively be entitled to any benefits due to other owners of the business.


moRE inFO if You haVE thEM
Re: Beware Of Dubious Private Placements by walcolm(m): 7:13am On Jun 19, 2008
I'm not sure any company that uses dubious private placement to collect money from you will agree to sign any MOU stating your claim to the company.

even though there are no regulatory authorities to moderate PP, there is still the legal bind a share certificate puts on a company. if you have a share certificate or you have a copy of the subscription form you used in buying into the company, you are a legal part owner of the company and you will be treated as such in case of liquidation.

if you dont have either, then you will insist on getting a share certificate from the company not a MOU
Re: Beware Of Dubious Private Placements by Gettolove(m): 6:03pm On Jun 19, 2008
that is right guy but na naija we dey
Re: Beware Of Dubious Private Placements by babaflaky: 12:07pm On Jun 23, 2008
I read a report on this post in thisday on sunday(23rd), in fact i thought the reporter saw the post on nairaland before publishing it in the newspaper. I want to thank the author of this post because i have actually invested in some P.P. and i was about buying another before i stumbled on this post.


This is what i read from the report yesterday.

We are advised to make sure that, the company will remain either a private or public outfit after the close of the offer. A company can be a public company and yet still be unquoted and only this can ensure an early exit.

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