Capitalisation: Diamond Bank targets N150bn with rights issue
Diamond Bank Plc is expecting about N150bn in market capitalisation at the end of its rights issue, while assuring its shareholders that it will continue to deliver superior returns.
Speaking at the Facts behind the Issue presentation of the bank on the floor of the Nigerian Stock Exchange (NSE) yesterday in Lagos, Managing Director and Chief Executive Officer of the bank, Mr. Alex Otti, said Diamond Bank is raising N50bn by issuing 8.68 billion shares at N5.80 kobo for every 50 kobo share.
The bank sees the rights issue as a way of compensating its existing shareholders, saying that the offer price is discounted.
“We may not have paid dividends for a long time, but you will soon be carrying the returns. We are keeping your money for you. That’s why we are asking for more. This is our own way of compensating our patient shareholders. The issue is coming at a discounted price. We have chosen to be an international bank,” Otti said.
He said that the bank remains focused in delivering services to the retail segment of the market.
“We pride ourselves as having one of the best people in the industry. We believe that the way to grow is organic growth, though we are not closing our eyes to Mergers and Acquisition,” Otti added.
“Today, we are known as one of the systemically important banks in Nigeria. The leadership of the bank is what I will leave you to judge.”