Has it dawned on anyone that we all may have been taken for a ride by FirstBank during their recently concluded hybrid offer? I just got my money returned to me and did a little math to see how we could have helped some bank managers get richer.

Being a current shareholder, I tried to take advantage of the rights issue (N31) and applied for roughly 161,290 shares which translates to a N5m investment. When word about the oversubscription started to go round, I knew I would get some money returned to me. How much however, I had no clue. When my stock broker notified me of the returned check, I found out I was allotted just over 8000 shares (5%) out of the lot I applied for. My returned check was for N4.75m exactly. As if this was not enough insult, no interest was paid on the money. Bear in mind here that I incured a N25,000 COT bill to make the money available to my brokers in the first place.

Now the story is that the offer was oversubscribed to the tune of N500bn. Between august 2007 and jan 2008, you have a clear 4 months for which if that money was placed (and you can bet on the fact that it was) at 12% per annum, you will end up with a cool N5bn per month. In 3 months, some smart managers would have banked N15bn at the expense of investors!!!! Now our monies are returned to us interest free. How criminal.

EFCC needs to look at this matter closely.

Piddo:

Has it dawned on anyone that we all may have been taken for a ride by FirstBank during their recently concluded hybrid offer? I just got my money returned to me and did a little math to see how we could have helped some bank managers get richer.

Being a current shareholder, I tried to take advantage of the rights issue (N31) and applied for roughly 161,290 shares which translates to a N5m investment. When word about the oversubscription started to go round, I knew I would get some money returned to me. How much however, I had no clue. When my stock broker notified me of the returned check, I found out I was allotted just over 8000 shares (5%) out of the lot I applied for. My returned check was for N4.75m exactly. As if this was not enough insult, no interest was paid on the money. Bear in mind here that I incured a N25,000 COT bill to make the money available to my brokers in the first place.

Now the story is that the offer was oversubscribed to the tune of N500bn. Between august 2007 and jan 2008, you have a clear 4 months for which if that money was placed (and you can bet on the fact that it was) at 12% per annum, you will end up with a cool N5bn per month. In 3 months, some smart managers would have banked N15bn at the expense of investors!!!! Now our monies are returned to us interest free. How criminal.

EFCC needs to look at this matter closely.

Did you apply for more than your rights? If yes why?

if no, you will be alloted your full rights!!!!!!

going by ur post, you said u tried to take advantage of the N31 rights issue price!!!! so y do u think u have any justification for shouting when they are not under any obligation to give you more that whatever u are entitled to as a current shareholder

anyways, they have said they will give a 5-7%p.a interest, and u should expect ur cheque sometimes in ur future

@all the Gurus in the House
I bought into the FBN PO and up till date i haven't receive my certificate, please i will like to know if there is anyway i can change the address to which the certificate will be sent to because the street address as been changed and i am worried maybe i might not get it, Help here !!!!!

The offer was not fraudulent. Perhaps it is the SEC rule that has been unfair.

I still have not receieved my returned money.I went to the branch i bought it in and was told my name is not there.I sent someone to First registrars in lagos and was told my cheque had been sent to the branch I bought it from.I then called the branch again and I was informed there have been mistakes where the returned cheques were sent to a different branch.Now it is up to me to start tracking my cheque.If these cheques have been ready for months why can't they just post them to us?

I tire no be small,

@Piddo, Walcolm, Wanado

The point is how is possible that with 140% oversubscription of the rights issue one should be getting only 5% allotment.
This is highly unlikely and ought to be scrutinised.

Samstone4

samstone4:

@Piddo, Walcom, Wanado
The point is how is possible that with 140% oversubscription of the rights issue one should be getting only 5% allotment.
This is highly unlikely and ought to be scrutinised.
Samstone4

if it was 140% over subscribed, then everybody who applied to take up their some or all of their rights would have been alloted fully and no scrutiny is necessary. you will need to raise hell if u applied to take up ur rights in full as a current shareholder and you were not given what is due you. i know such did not happen. the original poster wanted to take advantage of the extra rights issue discount by applying for about 2000% of what was due him, he didnt get it n was now shouting blue murder

I have been burnt by Dangote Flour and NAHCO.The word is 'secondary market'.EFCC needs to check the activities of these banks.