The House of Repre-sentatives yesterday said it would no longer allow fresh public offers on the Nigerian Stock Exchange (NSE) and private placements by financial institutions, pending the conclusion of an investigative hearing on the banking consolidation exercise slated for the second week of January, 2008.

Chairman of the House committee on capital markets, Honourable Ahmed Wadada, who stated this said he has explained the House’s position to the Securities and Exchange Commission (SEC), NSE and other regulatory bodies in charge of public offers.

For details, see http://www.thisdayonline.com/nview.php?id=99093

I think this is a step in the right direction. These people are playing on our intelligence with this PO of a thing. If truely the figures they are posting are correct, I think they should have enough capital to trade with. The ones we invested, how much have we earn from it.

Every time, share, share, share. Every thing Nigerians do, they bastardised it. Monkey dey work, baboon the chop!.

Abegi! no turn us to mumu.

Good news! I hope the ban goes into effect and affects the insurance industry as well. I don't understand why the SEC lets you sell an offer based on a 3 yr forecast and then approves another offer in 18 months. Best thing is to mandate that POs should be placed 3 years apart. And excess money should be returned at 5% more than the prevailing interest rate. Companies only understand financial penalties.

Very interesting news this is what i have been waiting for the bubble will soon bust and the seperations will take place let us keep our finger cross.
MORE REVELATIONS HIDDEN UNDER THE CLOAK OF I.P.O/ P.P, WILL SOON BE REVEAL!!!!

A good point from this House of Reps Action is that banks should return over subscription money with interest. Apart from this I do not see much as Wadada did not deliberate clearly about improving financial controls with respect to Auditing of the Accounts of quoted companies coming to raise money.

I am not impressed with these politicians as they have poor track record in improving the GDP of Nigeria. Look at electric power and all the waste associated with with our current state of things. These people just sit back and do the minimal. My feeling is these people in the house have other bad belle issues and hidden agenda.

Nigerian Banks are still very small. Also the Economy still needs a lot of funding. I see these bank IPO's/PO's bringing in a culture of savings / investments that in the short to medium term will cause Nigeria to move to the next level in economic growth. Most of the time our Politicians are always fast in retarding our growth. See how poor the North is. They top the poverty index, what are Politicians like Wadada doing to improve the economy up North ?

These politicians should please not retard our growth. The biggest Nigerian Bank is still nothing compared to the smallest South African Bank. Yet we call our self Giant of Africa. One of China's Banks raised a whooping sum in an IPO in 2006. Perhaps the world's biggets. The Industrial & Commercial Bank of China Ltd Raised $ 19.07 billion (N 2.2 Trillion). http://www.seekingalpha.com/article/18887-industrial-commercial-bank-of-china-sets-new-ipo-record-at-19-1-billion

I agree financial reporting controls need to be improved and that is why the USA introduced the SOX Act. But these controls are very much needed in Government Expenditure than in the Banks at the moment in Nigeria. Wadada please remove the log in your eyes first before removing the spec in SEC.

I love this, shares everysday, u get on which one to buy.

a very good and timely intervention by the house

Zenith bank is one of those who have bastardized the PO, three POs in three yrs, soo unnecessary if u ask me,

I suggest a probe into the bank's activities and use of the funds accruing from these Public Offers and immediate investigation of that Man called Mr. Jim Ovia

The banking industry is in trouble and they know it. The banks will not tell you the truth just like the bak workers lie about their salaries. I'll be highly surprise if some of these banks don't start to downsize their size of employees. Inrecontinental and Zenith already started to systematically swoe their employees the red flag. Mark my words, there will be another round of recapitallizations in the banking industry. The govt. goals is to reduce the number of banks to 5-8.

Its a welcome development, whenever they run down their funds or need money for something, they will declear Public Offer. CBN should have a close look at these banks before they slip off to the past.

can you just imagine the Zenith Bank share going for N38.90, what a rip off. up till now, 1st Bank is still holding on to investors certificate and that means you cannot do anything with your shares hence the price remain static. and what comes out as the dividends, the left-overs after the MD, GMs, Managers must have spent bulk of the profit on themselves and family. They are just feeding fat on investors' profit.

Though i'm not in support of financial institutions dominating our capital market, but what the Reps said was a big joke. Its too late, First Inland, Skye bank, Wema bank etc. are coming out soonest. Besides, i dont think the Reps have such powers.