Jaiz Bank To List On NSE

Jaiz Bank Plc, Nigeria’s first non-interest commercial bank, has secured the approval of the council of the Nigerian Stock Exchange (NSE) to list its shares.

The Quotation Committee, which oversees listing at the Exchange, has approved application for the listing of the shares of Jaiz Bank on the NSE.

Shareholders had earlier given approval of this at an Extra Ordinary General Meeting held October last year.

They also approved the splitting of the nominal value of its shares from N1 to 50 kobo, raising its authorized share capital from 15 billion shares of N1 to 30 billion shares of 50 kobo.

A total of 29.46 billion shares will be listed at a price of N1.25  per share, increasing the market capitalization of the exchange by N36.83 billion.

Finmal Finance Services Limited and Kundila Finance Services Limited and Inverness Wealth Management Limited, three investment firms, were said to be working with the board of jaiz Bank to facilitate the listing.

The stock, last traded on the NASD for N1.55. The bank will make history, by being the first stock to cross from the NASD OTC to the NSE.

The bank also intends to raise funds through an IPO to execute its expansion plans across the country, on the heels of its being granted a national license by the Central Bank of Nigeria (CBN) and increase its current share capital base from N15 billion to N25 billion.

Stock market analysts noted that the listing of the bank, will give a boost to the stock market which closed 2016 on a decline of 6.1 per cent and also lost 2.32 per cent to close the first trading week of 2017.

Jaiz Bank Plc declared a profit before tax of N794.2 million for the year ended December 31, 2015 as against N126.8 million in 2014. The bank grew its finance income by 47 per cent to N4 billion as against N2.72 billion in previous year. Total Asset stood at N52.6 billion by December 2015 compared with N44.4 billion in 2014. Customer deposit base closed 2015 at N38.7 billion, with current account and customers’ investment account deposits showing strong growth of 43 per cent and 39 per cent to N15.5 billion and N23.2 billion respectively.

Jaiz Bank was created out of the former Jaiz International Plc which was set up in 2003-2004 as a Special Purpose Vehicle (SPV) to establish Nigeria’s first full-fledged non-interest bank. it is owned by more than 20,000 shareholders including the Islamic Development Bank (IDB).