emmaodet:
Madam Mercy, please how do you identify a cross deal

WestPB:
Please, how do you get to know that particular deal was done off market, after all it was available on the trade deal list of GTCO

SonofElElyonRet:

Good opportunity... methinks one has to set limits to number of stocks.. like a target number.. otherwise oju kokoro can make somebody keep buying and buying until you no longer have disposable income remaining

ositadima1:



Based on my understanding, the Central Bank of Nigeria (CBN) wants banks to have huge reserves of a specific kind in order to be able to absorb shocks if any were to happen. If this raised fund is to satisfy the CBN's request, then know that the fund will not contribute much to the growth of the bank.

Locotrader:


Right issue means dilution.
44B os.May God help Gtb to generate more revenue in this 2024.if not, eps will reduce drastically and interim dividend may not take place as usual.Banks share prices will peak during these fund raising exercise, next is OYO.Dividend payments at the mercy of CBN.i see huge declines in 2024 financial end for banks but other battered sectors will be recuperating by year end.....

unite4real:
Zenith bank to double outstanding shares to about 62.7B units


That Clause 6 of the Company's Memorandum of Association and Clause 9 of the Company's Articles of Association be and are hereby
amended to reflect the new share capital of N31,396,493,787 (Thirty One Billion, Three Hundred and Ninety Six Million, Four Hundred and
Ninety Three Thousand, Seven Hundred and Eighty Seven Naira) by the creation of the addition of up to 31,396,493,787 (Thirty One Billion,
Three Hundred and Ninety Six Million, Four Hundred and Ninety Three Thousand, Seven Hundred and Eighty Seven) ordinary shares of
N0.50 Kobo each ranking pari‑passu with the existing ordinary shares of the Company bringing the total issued shares of the Company to
62,792,987,574 (Six Two Billion, Seven Hundred and Ninety Two Million, Nine Hundred and Eighty Seven Thousand, Five Hundred and
seventy Four) ordinary shares of N0.50 Kobo each.

unite4real:
Zenith bank to double outstanding shares to about 62.7B units


That Clause 6 of the Company's Memorandum of Association and Clause 9 of the Company's Articles of Association be and are hereby
amended to reflect the new share capital of N31,396,493,787 (Thirty One Billion, Three Hundred and Ninety Six Million, Four Hundred and
Ninety Three Thousand, Seven Hundred and Eighty Seven Naira) by the creation of the addition of up to 31,396,493,787 (Thirty One Billion,
Three Hundred and Ninety Six Million, Four Hundred and Ninety Three Thousand, Seven Hundred and Eighty Seven) ordinary shares of
N0.50 Kobo each ranking pari‑passu with the existing ordinary shares of the Company bringing the total issued shares of the Company to
62,792,987,574 (Six Two Billion, Seven Hundred and Ninety Two Million, Nine Hundred and Eighty Seven Thousand, Five Hundred and
seventy Four) ordinary shares of N0.50 Kobo each.

Mpeace:
Lol. Transcorp go just dey laugh all of una. Shebi una say 40billion is too much OS. Ngwa nu.

emmaodet:


Madam Mercy, please how do you identify a cross deal

BabsO2:


Look at page 57 the line item for Additional Tier 1 Capital
Look at page 204 note c(ii)

The AFS has no misstatement.

But the computation of BVPS of N70 is a misstatement. As that is not net assets a common NGX shareholder is entitled to.

phadriz:
Cross deal can only be done by a broker, it also passes through the trading machine, but it not thrown to the open market. Take for example Mr A give a sale order of 1,000 units of Transcorp and Mr B give a purchase order 5,000 unit of Transcorp to Morgan capital and the stock is on full bid. The broker will internally sell the stocks to Mr B within the current price range.

It also happen in a situation where volume of trade has been agreed BTW two parties at a predetermined rate within the price range.
The main thing to note is that it won't be thrown to the open market for queue.

unite4real:
Zenith bank to double outstanding shares to about 62.7B units


That Clause 6 of the Company's Memorandum of Association and Clause 9 of the Company's Articles of Association be and are hereby
amended to reflect the new share capital of N31,396,493,787 (Thirty One Billion, Three Hundred and Ninety Six Million, Four Hundred and
Ninety Three Thousand, Seven Hundred and Eighty Seven Naira) by the creation of the addition of up to 31,396,493,787 (Thirty One Billion,
Three Hundred and Ninety Six Million, Four Hundred and Ninety Three Thousand, Seven Hundred and Eighty Seven) ordinary shares of
N0.50 Kobo each ranking pari‑passu with the existing ordinary shares of the Company bringing the total issued shares of the Company to
62,792,987,574 (Six Two Billion, Seven Hundred and Ninety Two Million, Nine Hundred and Eighty Seven Thousand, Five Hundred and
seventy Four) ordinary shares of N0.50 Kobo each.

ositadima1:



Based on my understanding, the Central Bank of Nigeria (CBN) wants banks to have huge reserves of a specific kind in order to be able to absorb shocks if any were to happen. If this raised fund is to satisfy the CBN's request, then know that the fund will not contribute much to the growth of the bank.

Streetinvestor2:
I don't think u are right. It is capital base of 500 billion and not supposed to be idle fund to be kept just at cbn vault.

yMcy56:

* OFF MARKET DEALS does not pass thru trading engine
* You can get to know this thru your broker or news
* If you're a Morgan customer, you can see information on this in the news section.
* Try and be checking it from time to time
* Na the little I know be this.
* Any other person knowledgeable should enlighten us the more

ositadima1:


It is common sense that the capital raise is about enhancing the bank's ability to withstand potential shocks and maintain financial stability, as per the CBN's requirements. This raised money cannot be used for growth and serve as a buffer at the same time.

As a business person who is invested in a high-risk business, if you set aside some money to support your business in bad times, would you then go and use that money to try to make more gains? Does that make sense to you?

ositadima1:


It is common sense that the capital raise is about enhancing the bank's ability to withstand potential shocks and maintain financial stability, as per the CBN's requirements. This raised money cannot be used for growth and serve as a buffer at the same time.

As a business person who is invested in a high-risk business, if you set aside some money to support your business in bad times, would you then go and use that money to try to make more gains? Does that make sense to you?

Kwibaba:


What if the money is used in risk free investments to make more gain?

Omooloriredade:


Please note that it is not necessary for a bank to issue all shares created from raised the authorised share capital. For example, the additional 31B odd shares created by Zenith will fetch the bank over N900B (if they sold them at N30 per share) far above the CBN requirement of N500B and without considering the current paid in capital of N200B +. The other banks will follow suit. This is not a GT or Zenith bank issue.

ositadima1:


It is common sense that the capital raise is about enhancing the bank's ability to withstand potential shocks and maintain financial stability, as per the CBN's requirements. This raised money cannot be used for growth and serve as a buffer at the same time.

As a business person who is invested in a high-risk business, if you set aside some money to support your business in bad times, would you then go and use that money to try to make more gains? Does that make sense to you?

ositadima1:


CBN would likely want to see a clear separation between the bank's operating capital and the defensive, non-discretionary capital buffer.

Again, the primary purpose of the capital buffer is to provide a cushion against unexpected losses and shocks, not to generate returns. Deploying that capital, even in "low-risk" investments, means it is not fully available to serve its core intended function.

Agbalowomeri:
Waiting for Zenith bank at 10
Una grammar nor concern me😂

phadriz:
Cross deal can only be done by a broker, it also passes through the trading machine, but it not thrown to the open market. Take for example Mr A give a sale order of 1,000 units of Transcorp and Mr B give a purchase order 5,000 unit of Transcorp to Morgan capital and the stock is on full bid. The broker will internally sell the stocks to Mr B within the current price range.

It also happen in a situation where volume of trade has been agreed BTW two parties at a predetermined rate within the price range.
The main thing to note is that it won't be thrown to the open market for queue.

ositadima1:


It is common sense that the capital raise is about enhancing the bank's ability to withstand potential shocks and maintain financial stability, as per the CBN's requirements. This raised money cannot be used for growth and serve as a buffer at the same time.

As a business person who is invested in a high-risk business, if you set aside some money to support your business in bad times, would you then go and use that money to try to make more gains? Does that make sense to you?

chillykelly86:


The cushion you're referring to is in the banks books, not in CBN vault. What you're saying has no precedent, even in the banking sector. There have been banking sector consolidation and recapitalization in the past. The raised funds weren't deposited with the CBN. CBN hasn't indicated that the raised funds will be deposited with them. I will need all the experts in the world to explain the rational of such a decision and reconcile it with their stated purpose of preparing the banks to participate in big ticket transactions and for a $1 trillion economy.

emmanuelewumi:



Consider the average 5 years trend, profitability of the business and earning quality.


Instead of dropping in a screener, I will do it manually for stocks on my watchlist.


Some of the stocks that appeared on the screener are dead.

Capital intensity of a business is also dependent on the industry. You can't compares the capital intensity of Julius Berger with that APR

ositadima1:



I am not a banker, but my argument is based on common sense and knowledge from general engineering and personal safety practices. Why do people keep a spare tire in good condition and in their car at all times? Why do they keep pressure on the gauge for their fire extinguisher? Why do large contracting firms require a contractor to have sufficient backup capital before taking on a project? Why do banks request collateral before issuing loans? The list goes on.

The core point is that having a adequate reserve or buffer is a fundamental risk management practice across various industries. It's not about keeping the funds in a literal "safe" or box, but rather maintaining a pool of capital that can be accessed if needed, without directly tying it to current operations or growth initiatives.

In the case of banks, most of the capital they raise will likely not contribute to their growth in the short term. However, it will indirectly support the bank's stability and resilience, which can then help attract investors over the long run. The reserve capital serves as a crucial safety net, even if it is not being actively deployed for immediate business expansion.

The analogy to personal safety practices, like keeping a spare tire, highlights how reserve capital functions - it's not meant to be consumed for regular use, but is there as a contingency measure to draw upon if circumstances require it. Maintaining an appropriate level of buffer capital, while also utilizing funds for growth, is the balanced approach that banks need to strike.

ositadima1:



I am not a banker, but my argument is based on common sense and knowledge from general engineering and personal safety practices. Why do people keep a spare tire in good condition and in their car at all times? Why do they keep pressure on the gauge for their fire extinguisher? Why do large contracting firms require a contractor to have sufficient backup capital before taking on a project? Why do banks request collateral before issuing loans? The list goes on.

The core point is that having a adequate reserve or buffer is a fundamental risk management practice across various industries. It's not about keeping the funds in a literal "safe" or box, but rather maintaining a pool of capital that can be accessed if needed, without directly tying it to current operations or growth initiatives.

In the case of banks, most of the capital they raise will likely not contribute to their growth in the short term. However, it will indirectly support the bank's stability and resilience, which can then help attract investors over the long run. The reserve capital serves as a crucial safety net, even if it is not being actively deployed for immediate business expansion.

The analogy to personal safety practices, like keeping a spare tire, highlights how reserve capital functions - it's not meant to be consumed for regular use, but is there as a contingency measure to draw upon if circumstances require it. Maintaining an appropriate level of buffer capital, while also utilizing funds for growth, is the balanced approach that banks need to strike.