Following the success recorded in its just concluded Initial Public Offer (IPO), Skye Bank Plc, managers and sponsors of Skye Shelter Fund (SSF) has announced its intentions to approach the capital market once again to raise the second tranche of the fund put at N3 billion. 

Speaking during the listing of 20 million units of the fund at N100 per unit, the Deputy Managing Director of Skye Bank Plc, Mr. Kehinde Durosinmi-Etti disclosed that its desire to access the capital market, shortly after the conclusion of its IPO was borne out of the high demand and interest it has received from investors.

He said, “We sought to raise N2 billion from the IPO, but the offer was 102 per cent subscribed. This is a testimony of the acceptance of the fund by a generality of investors. Armed with this fact, we have decided to approach the market once again in a very short while to raise N3 billion which represents the second tranche of the fund.”
           
He disclosed that despite the fact that the fund is just been listed on the NSE, the proceeds from the funds have already been put into judicious use, as it has acquired a number of properties in choice areas of Lagos and Abuja.

A REITS is a collective investment with a specific focus on real estate investments. What this means is that investors pool money together with the fund manager investing the money in real estates instruments.

The law requires that REITS must distribute at least 80 per cent of its income to its shareholders annually. The distributions are not taxable, but only the dividends received by the shareholders are taxed.

According to Durosinmi-Etti the benefits of investing in the Skye Shelter Fund include its high dividend payout, high potential for long-term capital appreciation, safety of investment due to experience management by the fund manager and the opportunity for investors to diversify their portfolio.

Meanwhile, equity trading dipped on Tuesday by 15.74 per cent as a turnover of 1.07 billion shares valued at N14.04 billion was recorded in 21,004 deals in contrast to the previous day’s turnover of 1.27 billion shares valued at N19.03 billion in 20,857 deals.

The Insurance sub-sector dominated the other sub-sectors, accounting for 52.33 per cent of the market turnover with 561.64 million shares valued at N2.71 billion in 5,692 deals.

 Universal Insurance Plc recorded the highest patronage in the sub-sector with the exchange of 143.74 million shares valued at N467.15 million in 32 deals, followed by Linkage Assurance Plc with a turnover of 140.4 million shares valued at N695.73 million in 221 deals while Lasaco Assurance Plc recorded 65.92 million shares valued at N328.88 million in 671 deals. 

The upsurge in the performance indices was halted on Tuesday, as the All-share index and market capitalisation both dropped by 0.2 per cent each. Specifically, the index which opened at 64,510.26 points closed at 64,350.71 points while the capitalisation closed at N12.25 trillion from N12.27 trillion which it opened.