Confusion as Jaiz Bank slashes proposed private placement by 44.75% to N5.5b

WorldStage Newsonline– Jaiz Bank Plc, Nigeria’s premier non-interest bank has issued a fresh notice of an extral-ordinary general meeting to authorize the raising of additional capital of N5,525,000,000 by way of private placement.

The amount is 44.75% short of the N10 billion the bank earlier announced that it wanted to raise at the meeting which will still hold at its head office at Kano House, 73 Ralph Shodeinde Street, Central Business District Abuja on Wednesday, 28th October 2020 at 11.00am.

WorldStage had earlier reported the notice signed by Mrs Rukayat Oziama Dahiru, Company Secretary that a N10 billion private placement will be by way of offer for subscription of 20 billion ordinary shares of the bank at the rate of N0.65k per share to identified investors.

But the latest notice said an additional capital of N5,525,000,000 by way of private placement will be through 8,500,000,000 ordinary shares to be offered to identified investors at the rate of N0.65 per share

Moreover, the latest notice still quoted that N10 billion special placement was required to fund the bank’s branch expansion drive, enhance its information technology infrastructure, and enhance its working capital to meet the needs of its teaming customers.

Despite the confusion, the stock market responded positively to the news on Wednesday as the stock rose 0.03% to N0.61 with 18 transactions involving 716,100 shares valued at N427,407.07 as at 2.40PM Nigerian time.

The current stock price is N0.04 short of the price quoted for the proposed private placement.

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