NaijaWire

First Bank refunds over-subscribed investors with interest

Lagos - First Bank PLC has issued refunds to some investors because the bank’s last IPO was incredibly over-subscribed.

The bank had attributed the unprecedented response to its IPO as a reflection of the market’s confidence and trust in its potential to build shareholder value.

The bank said that in order to accommodate as many subscribers as possible, a supplementary allotment of 4,545,454,545 ordinary shares, equivalent to the existing room in its authorised share capital, was issued.

As a sign of goodwill and integrity, the bank has therefore voluntarily paid interest on all returned monies at an annualised rate of five per cent from Monday, September 10 2007 to Monday, November 5, 2007. The decision was a gesture of goodwill to the bank’s numerous investors whose applications were not fully met during the offer.

First Bank admitted that the sheer number of applications for subscription of over one million proved to be very challenging in the final allotment of shares. The bank had wished to absorb every application but business imperatives dictated otherwise.

The bank also wished to make it clear that much value is placed on its relationships with all shareholders and the confidence reposed in it by the investing public. As such, it said, it would at all times strive to reward such confidence and remain committed to the protection of its investors’ interests.

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