AP Shareholders Worry over Losses
- By Kayode Ogunwale
- Published August 23rd, 2010
- News
- Unrated
SHAREHOLDERS in African Petroleum Plc’s (AP) hybrid offer in 2008 have lost about 91 percent of the money invested due to various alleged malpractices in the market.
AP in 2008 offered 262.9 million shares to its existing shareholders on the basis of one ordinary share for every three shares held. It also offered for subscription 199.1 million shares at N250 per share.
AP is a major player in the energy sector and boasts of nearly 97,000 shareholders. The company’s forecast of earning per share of N11 and a dividend payout of N11 for the year 2008, coupled with an impressive performance in 2007, pushed up the demand for its shares. The company had also projected to pay dividends of N10, N13 and N15 per share in 2008, 2009 and 2010.
But two years after, AP share now sells for just N21.20. This represents N208.8 kobo or 91 per cent loss for those who participated in the rights issue and N228.8 kobo or 92 per cent loss for the investors who participated in the offer for subscription. The current share price of the company i.e. N21.20 kobo is lower than the N23.76 kobo it sold in 2000. The share price is still declining, indicating, therefore, that it could hit the N10 mark before long.
The shareholders have called on the regulatory authorities to protect their investments by taking adequate measures to avoid further slide of their share value before it is too late.
AP in 2008 offered 262.9 million shares to its existing shareholders on the basis of one ordinary share for every three shares held. It also offered for subscription 199.1 million shares at N250 per share.
AP is a major player in the energy sector and boasts of nearly 97,000 shareholders. The company’s forecast of earning per share of N11 and a dividend payout of N11 for the year 2008, coupled with an impressive performance in 2007, pushed up the demand for its shares. The company had also projected to pay dividends of N10, N13 and N15 per share in 2008, 2009 and 2010.
But two years after, AP share now sells for just N21.20. This represents N208.8 kobo or 91 per cent loss for those who participated in the rights issue and N228.8 kobo or 92 per cent loss for the investors who participated in the offer for subscription. The current share price of the company i.e. N21.20 kobo is lower than the N23.76 kobo it sold in 2000. The share price is still declining, indicating, therefore, that it could hit the N10 mark before long.
The shareholders have called on the regulatory authorities to protect their investments by taking adequate measures to avoid further slide of their share value before it is too late.
