Jaiz Bank to Sell N3.3bn Shares Through Private Placement

By Dipo Olowookere

Foremost non-interest bank in Nigeria, Jaiz Bank Plc, is seeking to raise not less than N3.3 billion from investors through a private placement, Business Post reports.

The company held an Extraordinary General Meeting on Wednesday at its office in Abuja and it was unanimously agreed that the amount should be sourced via the means.

This will require the lender to create additional 5,076,923,077 units of Jaiz Bank shares at 65 kobo each and would be allotted to the new investors. The authorisation for this has been granted by shareholders.

However, the company will still seek the approvals of the relevant regulatory agencies like the Securities and Exchange Commission (SEC), the Nigerian Stock Exchange (NSE) and others.

A notice signed by the company secretary, Mrs Rukayat Oziama Dahiru, stated that shareholders at the meeting passed the four major resolutions put forward by the board of directors.

“That the directors be and are hereby authorised to raise additional capital of N3.3 billion by way of private placement;

“That subject to obtaining the requisite regulatory approvals, 5,076,923,077 ordinary shares of the bank shall be offered to identified investors by way of private place at the rate of 65 kobo per share;

“That subject to the approval of the NSE, the placement shares shall be listed on the NSE upon conclusion of the private placement;

“That the directors be and are hereby authorised to take all necessary steps required to give full effect to the private placement including the execution of any documents, all regulatory filings and appointment of professional advisers,” the disclosure from the lender said.

Shares of Jaiz Bank depreciated by 2 kobo or 3.33 per cent on Friday at the stock exchange to settle at 58 kobo per unit.

Jaiz Bank currently has outstanding shares of 17,089,264,594 with a market capitalisation of N29.5 billion. The creation of additional 5,076,923,077 shares will increase the total stocks to 22,166,187,671 units.

Business Post recalled that the financial institution had earlier this month said it was looking to raise N10 billion through a private placement.