The Managing Director and Business Officer at Optimus by Afrinvest, Ayodeji Ebo has stated that the success of recent public offers and recapitalization efforts by banks will largely depend on their ability to attract foreign investors.
Ebo disclosed this while speaking at the industry outlook webinar, themed “Banking Public Offers: Buy, Sell, or Hold?” on Saturday, according to Nairametrics.
He noted that foreign investment is crucial to ensuring the success of these financial institutions’ ongoing public offers.
He stressed that foreign investors will play a pivotal role in determining the success of these financial institutions’ current public offers.
He noted that many foreign investors will be attracted to the public offers because of the narrow gap between the offer prices and market prices, making these investments especially appealing.
“Foreign investors will play a major role in the success of the current public offers.
“They will also be investors that banks would have to get to ensure that the offers and recapitalization are successful.
“The banks have long-term prospects and it’s an opportunity for these investors to want to key in,” Ebo said.
Ebo further emphasized that prospective investors should carefully evaluate several factors before committing to a bank’s public offer.
He explained that merely purchasing shares because they appear attractive is not enough; investors must also conduct thorough due diligence.
He added that this process should include assessing the bank’s current performance, reviewing its past dividend yields, and analyzing other critical metrics.
Ebo also highlighted the importance of continuously monitoring the bank’s quarterly performance after investing to assess the bank’s ongoing progress.
“Before you invest in a bank public offer, look out for their last dividend yields.
“Before buying a share, look at how well the bank is being run.
“Also, once you have invested in a share, you need to also monitor quarterly performance,” Ebo added.
In March, the Central Bank of Nigeria launched a recapitalization initiative to strengthen the capital reserves of Nigerian banks.
