Foreign investors key to success of bank public offers

• Published On: 25 August 2024 at 18:21

Ayodeji Ebo, Managing Director and Business Officer at Optimus by Afrinvest, has stated that the success of recent public offerings and bank recapitalisation efforts will be largely determined by their ability to attract foreign investors.

According to Nairametrics, Ebo disclosed this during the industry outlook webinar "Banking Public Offers: Buy, Sell, or Hold?" on Saturday.

He emphasised that foreign investment is critical to the success of these financial institutions' ongoing public offerings.

He emphasised that foreign investors will play a critical role in the success of these financial institutions' current public offerings.

He stated that many foreign investors will be drawn to public offerings due to the narrow gap between offer prices and market prices, making these investments particularly appealing.

"Foreign investors will play an important role in the success of the current public offerings.

"They will also be investors that banks must attract in order to ensure the success of the offers and recapitalisation.

"The banks have long-term prospects and it's an opportunity for these investors to want to key in," says Ebo.

Ebo emphasised that prospective investors should carefully consider several factors before committing to a bank's public offering.

He explained that simply purchasing shares because they appear attractive is insufficient; investors must also conduct extensive due diligence.

He also stated that this process should include evaluating the bank's current performance, reviewing previous dividend yields, and analysing other critical metrics.

Ebo also emphasised the importance of continuously monitoring the bank's quarterly performance after investing to assess the bank's progress.

"Before investing in a bank's public offering, check the last dividend yields.

"Before purchasing stock, consider how well the bank is run.

"Also, once you have invested in a share, you need to also monitor quarterly performance," Ebo clarified.

In March, the Central Bank of Nigeria launched a recapitalisation initiative to help Nigerian banks strengthen their capital reserves.