By Yakubu LAAH investadvocate

Sept 22 2010 09.11 GMT

 

 

Lagos–The Year 2008 Initial Public Offering (IPO) of former National Sports Lottery Plc (NSL) now Securities Electronic Technology Plc (SET) operating in the Commercial/Services sector of the Nigeria Stock Exchange (NSE) was 99.08% undersubscribed.

 

This was contained in a recent letter with reference number BSD/DIR/GEN/LRA/03/029 dated September 14 2010 and signed by Samuel A. Oni Director of Banking Supervision of the Central Bank of Nigeria (CBN) to The Principal Solicitor, Legal Resources Alliances (Legal Practitioners) on a petition by the addressee to the Apex Bank in respect of Spring Bank Plc underwriting Commitment/ Agreement on the then National Lottery Plc Public Offer.

 

In reviewing the various documents in respect of the transaction, the CBN established that an approximately N110 million was realised out of the Public Offer of N12 billion which indicates a 99.08 percent (99.08%) undersubcription.

 

It was also affirmed that the N110 million realised out of the Offer has been used in the company’s business.

 

As earlier reported, on July 14 2008, NSL now Securities Electronic Technology Plc (SET) sought to raise N12.4 billion from members of the investing public by offering 800 million Ordinary Shares of 50 Kobo each at N15.50 per share.

 

 

The company sought to raise the amount in order to become a platform for the convergence of Lottery and Electronic Transaction Processing; which include credit/debit card payments, electronic airtime vending, bill payment and funds transfer.

 

In the Offer Prospectus, the firm affirmed that  the above would be achieved  by expending N5.750 billion to fulfil contractual obligation to purchase a further 30,000 POS terminals from Ingenico, SA, Paris by the end of that financial year.

 

In addition to the 20,000 already purchased by NSL; N4.0 billion would be used to refinance short term expensive debt.

 

While another N1.541 billion would finance working capital requirements and contingencies which will include a significant spend on publicity and advertisement.

 

The company would use another N700 million to finance various Network and Communication expansion.

 

NSL offered a minimum of 1,000 shares and multiplies of 100 thereafter.

 

However, as at the time of filling in this report, investadvocate sought to clarify the issue on phone from Lanre Oloyi, Assistant Director/ Head, Media of The Securities and exchange Commission (SEC); but all to no avail as he did not pick the several calls.