BabsO2:


It depends on the price of the rights issue. With book value currently at N38. And assuming EPS will stay above N4.5. If rights issue is not more than N20 I will take the rights with the hope that the price will still rise towards N30 and beyond post rights issue.

I thought I saw somewhere it will be #16.Yes the guardian link quoted #16

Streetinvestor2:
I thought I saw somewhere it will be #16.Yes the guardian link quoted #16

And the big boys will mop up the rights

Agbalowomeri:


And the big boys will mop up the rights

What is your opinion on the rights. Do we leave the rights for the chairman. Do fbn really need to raise more cash with the way they have managed the bank in the past.what happened to all the bad loan.Are we sure the new cash will not end up in another round of bad loans

Streetinvestor2:
What is your opinion on the rights. Do we leave the rights for the chairman. Do fbn really need to raise more cash with the way they have managed the bank in the past.what happened to all the bad loan.Are we sure the new cash will not end up in another round of bad loans

These are really tough questions to answer. FBNH the more you look the less you see Lol

Streetinvestor2:
What is your opinion on the rights. Do we leave the rights for the chairman. Do fbn really need to raise more cash with the way they have managed the bank in the past.what happened to all the bad loan.Are we sure the new cash will not end up in another round of bad loans

IMO, This rights is targeted to serve other purposes other than capital raising cos even at the worst times immediately after Bisi left, the bank didn't raise capital so why now?

Streetinvestor2:
What is your opinion on the rights. Do we leave the rights for the chairman. Do fbn really need to raise more cash with the way they have managed the bank in the past.what happened to all the bad loan.Are we sure the new cash will not end up in another round of bad loans

FBN needs that capital.
Check out their CAR, it is on the edge and the lowest among tier 1 banks.

pluto09:


FBN needs that capital.
Check out their CAR, it is on the edge and the lowest among tier 1 banks.

Correct their CAR is on border line. As First Bank customer deposits has been rising faster than SHF growth even after the years most of the bad loans were cleared. FBN needs SHF cash injection to raise its CAR. Hopefully the Rights documents should reveal more information.

Streetinvestor2:
I thought I saw somewhere it will be #16.Yes the guardian link quoted #16

That means the rights is worth taking. And the fat cats will grab any not taken.

Hi Babs

BabsO2:


That means the rights is worth taking. And the fat cats will grab any not taken.

I need CUTIX at N2.40 and JAPAUL at N0.70 to re-enter…

Big caps

MTN @N200, GTB @N25, NESTLE @ N700 and SEPLAT @ N1,200 to enable me load up!

Where are the bears?

Coolcash1:
I need CUTIX at N2.40 and JAPAUL at N0.70 to re-enter…

Big caps

MTN @N200, GTB @N25, NESTLE @ N700 and SEPLAT @ N1,200 to enable me load up!

Where are the bears?

Nestle 700 Seplat 1200. Lol.

BabsO2:


That means the rights is worth taking. And the fat cats will grab any not taken.

When do one participate in right issue.. And how do you know your broker will buy at that price..
E. G Fidelity just dropped disclosure yesterday On right issue(no price indicated)
First bank is on its way..
For an existing shareholder
So how does he/she key in at the right issue price.?.
Anyone knowledgeable please..

chimex38:

When do one participate in right issue.. And how do you know your broker will buy at that price..
E. G Fidelity just dropped disclosure yesterday On right issue(no price indicated)
First bank is on its way..
For an existing shareholder
So how does he/she key in at the right issue price.?.
Anyone knowledgeable please..

Didn't see any Fidelity disclosure on rights issue this week. Rather they listed the shares sold through private placement.

When the rights issue is ready for execution (FBNH OR FIDELITY), the timeline for subscription and forms are mailed out to existing shareholders to complete and submit with their cash injection.

BabsO2:


Didn't see any Fidelity disclosure on rights issue this week. Rather they listed the shares sold through private placement.

When the rights issue is ready for execution (FBNH OR FIDELITY), the timeline for subscription and forms are mailed out to existing shareholders to complete and submit with their cash injection.

OK. True.Fidelity listed shared sold.
Thanks for the right issue clarification..
Gracias

Agbalowomeri:


Uchenson and Myjoy08
Buy buy buy
Market showed them pepper

Hahahahahaha.
No be small pepper o.

BabsO2:


Correct their CAR is on border line. As First Bank customer deposits has been rising faster than SHF growth even after the years most of the bad loans were cleared. FBN needs SHF cash injection to raise its CAR. Hopefully the Rights documents should reveal more information.

Pls clarify on the part of bad loan. Is it that the debtors paid up or the bank wrote them off via shareholders money in yearly statement.

Streetinvestor2:
Pls clarify on the part of bad loan. Is it that the debtors paid up or the bank wrote them off via shareholders money in yearly statement.

The bank wrote off majority of bad loans through profits that would have accrued to shareholders if not for the bad loans. The write-offs are recorded under Impairments in the income statement.

A few recoveries were made. Also recorded under Impairments as a credit instead of a debit. Or simply stated as a write back in the accounts

Access Vs SEPLAT's CEO

Private Placement was #4.60

chimex38:

When do one participate in right issue.. And how do you know your broker will buy at that price..
E. G Fidelity just dropped disclosure yesterday On right issue(no price indicated)
First bank is on its way..
For an existing shareholder
So how does he/she key in at the right issue price.?.
Anyone knowledgeable please..

chimex38:

When do one participate in right issue.. And how do you know your broker will buy at that price..
E. G Fidelity just dropped disclosure yesterday On right issue(no price indicated)
First bank is on its way..
For an existing shareholder
So how does he/she key in at the right issue price.?.
Anyone knowledgeable please..

Don't worry. In the capital market right issue document is a public material everything about the right issue will be stated in black and white such as the price, and quantity of shares due to each investor and opportunity to buy more in most cases at a ratio also stated in the right document. The truth is that you actually don't need a stockbroker to take up your right. You can go to any of the receiving banks and submit your completed form. With the information you supplied on the form, your right will be credited to your cscs after the regulatory procedures.

Note: The form or sometimes the link will be sent to you by the registrars to the company, It can also be requested by the shareholder if not sent, you are required to download, complete, and then submit with any of the receiving agents your stockbroker inclusive. It's also important that you open a cscs account if you don't have otherwise there will be no place to domicile your shares because the era of paper certificates is passed.

BabsO2:


The bank wrote off majority of bad loans through profits that would have accrued to shareholders if not for the bad loans. The write-offs are recorded under Impairments in the income statement.

A few recoveries were made. Also recorded under Impairments as a credit instead of a debit. Or simply stated as a write back in the accounts

That I know.And this criminals have the capacity to pay but have refused to pay back.They equally the ones buying the bank shares to earn position in the bank for another round of loans.Nsija which way forward. Why is fbn not going hard on this debtors like access bank

Streetinvestor2:
That I know.And this criminals have the capacity to pay but have refused to pay back.They equally the ones buying the bank shares to earn position in the bank for another round of loans.Nsija which way forward. Why is fbn not going hard on this debtors like access bank

The amount lost due to bad loans in the last 10 years is more than five times the N150b the rights is intended to raise. How much has the likes of Otudeko made along with the former directors in the bad loans mess.

Zenith and GT have routinely made pat's bigger than this FBN rights in the last couple of years sef.

BabsO2:


The amount lost due to bad loans in the last 10 years is more than five times the N150b the rights is intended to raise. How much has the likes of Otudeko made along with the former directors in the bad loans mess.

Zenith and GT have routinely made pat's bigger than this FBN rights in the last couple of years sef.

FBN should not be a long term investment, the managers of FBN are specialist in value destruction



In 2004 when the like of GTB and Zenith were paying dividends of about 60k per share, FBN paid between N1.50k and N1.70k.


Fast forward to 2022, GTB and Zenith paid an average dividend of about N3.00 per share while FBN struggled to pay a dividend of about 50k per share.


CBN should come hard on insiders related loans.


Yet to see any serious legal action taken by FBN against loan defaulters, rather the bank's profits and shareholders dividends are used to block the holes created by the bad loans

emmanuelewumi:




FBN should not be a long term investment, the managers of FBN are specialist in value destruction



In 2004 when the like of GTB and Zenith were paying dividends of about 60k per share, FBN paid between N1.50k and N1.70k.


Fast forward to 2022, GTB and Zenith paid an average dividend of about N3.00 per share while FBN struggled to pay a dividend of about 50k per share.


CBN should come hard on insiders related loans.


Yet to see any serious legal action taken by FBN against loan defaulters, rather the bank's profits and shareholders dividends are used to block the holes created by the bad loans

And someone said shareholders shouldn't protest.

emmasoft:


Don't worry. In the capital market right issue document is a public material everything about the right issue will be stated in black and white such as the price, and quantity of shares due to each investor and opportunity to buy more in most cases at a ratio also stated in the right document. The truth is that you actually don't need a stockbroker to take up your right. You can go to any of the receiving banks and submit your completed form. With the information you supplied on the form, your right will be credited to your cscs after the regulatory procedures.

Note: The form or sometimes the link will be sent to you by the registrars to the company, It can also be requested by the shareholder if not sent, you are required to download, complete, and then submit with any of the receiving agents your stockbroker inclusive. It's also important that you open a cscs account if you don't have otherwise there will be no place to domicile your shares because the era of paper certificates is passed.

Thank you as always.

Shalom428:
And someone said shareholders shouldn't protest.

Infact if they can have thr way,they should block the right issue .They should tell the bank to go after the loan defaulters to raise the amount.

I will try and send my vote online against it since it is my right.The amount is even small for a bank the size of Fbn in asset if they have genuine intentions to use it for biz.The formal cbn guy was just a criminal that needs to rot in jail
.

thesilentone:
Private Placement was #4.60

For Fidelity abi?
Hmmm. Cuz of the huge volume of shares from each investor involved I think.
So it is this discounted?
Thank you for d info.

Streetinvestor2:
Infact if they can have thr way,they should block the right issue .They should tell the bank to go after the loan defaulters to raise the amount.

I will try and send my vote online against it since it is my right.The amount is even small for a bank the size of Fbn in asset if they have genuine intentions to use it for biz.The formal cbn guy was just a criminal that needs to rot in jail
.

The right is not necessary, it is a strategy by Otedola and current insiders to consolidate their holdings and ward off Otudeko.



Tony used similar strategy to consolidate his holdings in Africa Prudential Registrar and United Capital.


Most shareholders won't take their rights, Otedola and others will buy the right.


I see Otudeko fighting back by willing to buy the right at a premium from shareholders.

emmanuelewumi:







I see Otudeko fighting back by willing to buy the right at a premium from shareholders.

.How do one go about this or benefit from it if you don't wish to pick up your rights if the rights goes through

Streetinvestor2:
.How do one go about this or benefit from it if you don't wish to pick up your rights if the rights goes through

Get in touch with your Stockbroker when the offer is out, you might get a premium of N3 on per share basis.

The offer might not exceed a week.


My opinion though

emmanuelewumi:



Get in touch with your Stockbroker when the offer is out, you might get a premium of N3 on per share basis.

The offer might not exceed a week.


My opinion though

Another option is to monitor closely if the market price is high enough than the rights +N3 to +N6 to sell some shares (up to a fifth of ones holdings) and use the sales proceeds to buy the rights. A word of caution - this should only be done when everything about the rights is firm. Otherwise one may sell and find out the rights is cut short from going ahead.

BabsO2:


Another option is to monitor closely if the market price is high enough than the rights +N3 to +N6 to sell some shares (up to a fifth of ones holdings) and use the sales proceeds to buy the rights. A word of caution - this should only be done when everything about the rights is firm. Otherwise one may sell and find out the rights is cut short from going ahead.

oil dey your head....