Nigeria’s pioneer ethical investment company, Lotus Capital has commenced its Initial Public Offering (IPO) Halal Investment Fund at N1:00 per unit. 

The IPO tagged “The Halal Fund”, is the first of its kind and formally opened to the investing public on Monday 25th, February 2008. It is targeted at socially responsible investors, companies, societies, Pension and Provident Funds who seek attractive returns through a broadly diversified portfolio of equity and quasi-debt securities in compliance with Islamic Law.

The offer was formally opened on Monday February 25, 2008 peaking at the company’s maiden completion board meeting, Hajara Adeola, MD Lotus Capital Limited said, “The most important aspect of this fund is that for the first time, people who have been sceptical about investing due to their ethical values can finally be rest assured that their money will not be invested in securities that negate their principles.”

To facilitate information dissemination during and after the IPO, Lotus Capital will also be launching its website this month. This was disclosed by the company’s Head of Business Development Adebiyi, Adedamola, who explained that the website will provide detailed information on the company’s operations and how to invest in the IPO.

Adedamola said, “We want to keep our clients up to date on our activities and this website is an innovative way to do that. It will provide easy access to the company as well as explain the company’s products while regularly providing news updates on the company.”

He also added that the website is customer friendly as it will give clients the opportunity to monitor their account without needing to visit the company’s headquarters.

Funds realised from the IPO will be invested in securities of companies quoted on The Nigerian Stock Exchange and any recognised foreign and local securities exchange.

 These however, exclude those stocks prohibited by Islamic Law which include stocks of businesses such as breweries, casinos, adult–entertainment, tobacco, conventional banks and insurance companies.

Although the offer officially closes on the 2nd of April 2008, it is open ended and investors can always subscribe even after the closing date.

Lotus Capital is a Nigerian pioneer in this emerging but huge financial market. During the last year ended December 2007, the company recorded a return of 38.9% on investment.