NGX to list 5.076bn units of Jaiz Bank shares sold through Private Placement

The Nigerian Exchange (NGX) Limited has approved for listing the 5.076billion ordinary shares of Jaiz Bank Plc sold to investors through a Private Placement.

Private placement is a funding round of securities which are sold not through a public offering, but rather through a private offering, mostly to a small number of chosen investors. As the name suggests, a “private placement” is a private alternative to issuing, or selling, a publicly offered security as a means for raising capital.

Jaiz Bank Plc had raised N3.3 billion through private placement of its 5,076,923,077 ordinary shares to investors at 65 kobo per unit following the shareholders’ approval for the board to create the new equities at an Extra-Ordinary General Meeting (EGM).

Jaiz Bank Plc shares trade at 61 kobo on the Nigerian Bourse, nearing its 52-week low of 52kobo as against 52-week high of 88 kobo. Listed on the NGX financial services sector (banking subsector), Jaiz Bank’s outstanding shares are slightly in excess of 29.464 billion.

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The companies sought the approvals of the relevant regulatory agencies like the Securities and Exchange Commission (SEC) and the Nigerian Exchange (NGX) limited.

The NGX on May 11 approved for the listing. The Stockbroker/issuing house/financial adviser to Jaiz Bank Plc in the transaction is Finmal Finance Services Limited.

In the financial year ended December 31, 2020, Jaiz Bank proposes to pay 3 kobo dividends which will be brought forth for approval by shareholders at the 9th Annual General Meeting of Jaiz Bank Plc on Wednesday, June 23, 2021.

Jaiz had closed the year 2020 with a profit of N2.903 billion. In the first quarter ended March 31, the bank reported after-tax profit of N832.29 million, a remarkable leap from N553.92 million in Q1’2020.