Nib International Bank, Ethiopia auctioned of 80,000 shares within a few hours at a 40% premium over the original share price offered to the public. 
The 80,000 shares on offer were all sold within half a day for cash remarked a businessman who purchased shares worth 40,000 birr. The bank was not accepting checks because there were many willing to pay cash for the shares he noted.
Shareholders of the bank decided to increase the paid-up capital of NIB to one billion birr during a general assembly held recently. The sale of shares is expected to raise the current capital of the bank, 734 million birr by 266 million birr.The shares auctioned are part of the 200,000 shares the bank’s shareholders approved for sale at the 10th extraordinary meeting held in 2008. 2834 shareholders managed to buy 160 million birr worth of shares in 200/09 with the shares left over put up for auction now.
The increase in paid up capital should enable NIB to be more resilient to market shocks although it will mean declined earnings for shareholders in the short term according to Abdulmen Mohammed, accounts manager for London based Portobello Group Ltd.
It is to be remembered that an auction of Nib International Bank shares held due to a legal dispute saw the 173 shares offered at 131% more than their par value.
Source: Addis Fortune
