New Telegraph

Rights Issue: Coronation Securities Provides Direction For Shareholders

As banks approach the capital market for funds with regard to the ongoing recapitalisation exercise, Coronation Securities Limited has advised shareholders to study the track records of banks before putting in their funds.

According to financial experts, who gathered for a webinar session themed: ‘Understanding Bank Capitalisation: Rights Issue and Opportunities for Investors,’ and organised by Coronation Securities, potential investors, who intend to take their rights should endeavour to understudy the performance of the company before getting involved, despite being a shareholder.

Speaking to this fact, panelists at the event Head, Financial Institutions Ratings, Agusto & Co, Ayokunle Olubunmi and Partner PwC, Head Capital Market Accounting Advisory Services Practice, West Market Africa Mrs. Bolanle Adekoya, called on the investors to always consider the track records of the firms they seek to invest in and ensure they properly acquire the required investments education before putting in the funds.

While encouraging shareholders not to lose their rights when such opportunities emerge, especially now that banks are in the market for their capital raise, the Keynote Speaker, Chief Economist, Security and Exchange Commission (SEC) Nigeria, Okey Umeano, advised them to always seek knowledge from registered stock brokers while investing, stressing that they were well regulated to give them a positive direction.

The webinar provided an avenue for the experts to interact with the public, while also providing answers to the range of questions asked by the participants. They encouraged the public to leverage the opportunities provided by the bank capitalisation to invest in banks of their choice.

Umeano, who spoke on ‘Bank Recapitalisation Focus on Right Issues,’ said Nigeria had strong deposit banks, which have grown, performing well and properly regulated by the Central Bank of Nigeria (CBN).

He said that though the banks are strong, they needed adequate capital to enable them compete effectively in the international space, adding that rights issue has been one of the best methods of raising capital and that bank capitalisation was good for economy development.

He highlighted the importance of rights issue to investors, saying that it helped investors to retain ownership of their investments; price reduction; investors protection; opportunity of higher return; no tax, transparency and disclosures among others.

While applauding Coronation Securities for conducting the education/ awareness programme, he pointed out that the public needed to be properly educated to enable them invest wisely, stressing investors should seek knowledge, conduct due diligence with support from experts before investing.

On his part, the Deputy Chief Executive Officer Coronation Securities Limited, Olusegun Owadokun, appreciated participants for gracing the event, stating that in today’s financial landscape, the importance of robust capitalisation can’t be overemphasised.

He noted that the webinar was designed to help the public in making informed investments decisions. Coronation Securities Limited is engaged in the business of Securities Trading and Brokerage.

The company provides a full-service platform that allows clients to take advantage of market opportunities, as well as access to structured products, bonds and alternative investments.

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