Jaiz Bank to raise N13b via private placement

Nigeria’s premier non-interest bank, Jaiz Bank Plc, has unveiled plans to raise new equity funds of about N13 billion through a private placement to deepen its growing balance sheet.

In a regulatory filing at the Nigerian Stock Exchange (NSE) signed by Jaiz Bank’s Company Secretary, Mrs Rukayat Dahiru, Jaiz Bank plans to offer 20 billion ordinary shares of 50 kobo each at 65 kobo per share through private placement to identified investors.

The bank indicated that the board of directors has called an extraordinary general meeting (EGM) of shareholders to seek formal approval for the private placement.

At the EGM scheduled for late October in Abuja, shareholders are expected to mandate the directors of the bank to issue new shares and undertake private placement. The meeting is also expected to approve the listing of the resultant additional shares on the NSE.

According to the bank, the net proceeds of the private placement will be used to fund its branch expansion, enhance information technology infrastructure and boost working capital in lin with the growth objectives of the bank.

The management of Jaiz Bank projected that the non-interest financial institution will post a gross income of N5.41 billion in the fourth quarter with average pre-tax profit per average sales expected at 13.03 per cent.

In a forecast recently submitted to the NSE, Jaiz Bank predicted that profit before tax will be N705.37 million while profit after tax is expected to close the three-month period at N634.83 million.

The forecast, signed by Jaiz Bank’s Chief Financial Officer, Abdulfattah Amoo, indicated that the bottom-line performance was predicated on financing income of N4.94 billion and financing expenses of N1.39 billion, leaving net revenue from funds at N3.55 billion.