Investors Keen on Dunlop Nigeria Shares

Stockbrokers and dealers said existing Dunlop Nigeria shareholders and new investors are considering using the company’s forthcoming share offering as a way of taking strategic stock positions.

Last week, Dunlop Nigeria completed the pre-offer process for 1.5 billion ordinary shares of 50 kobo each at 2.50 Nigerian naira (£0.01) per share for a minimum of 1,000 shares. The company will also simultaneously be offering 756 million ordinary shares of 50 kobo each to shareholders of record as of 30 October, 2006 on the basis of one new share for one share held at N2.30 per share.

Nigeria’s Daily Sun quotes Abimbola Olashore, executive director, wholesale banking group of Ecobank Nigeria plc, as saying there are indications that investors could consider Dunlop shares as a good buy and would particularly take advantage of the window of opportunity provided by the two offers.