Hello Fokona team,
I am new here and still going through the course materials on how to invest in Nija stock market. I want to subscribe to the Dangote IPO through my bank (union bank). I’ve just checked their named broker on NGX site and this broker is not listed. What does that mean? Can a whole union bank use an unlisted broker?
Great! Let's start!---Ah, my dear friend who's eager to dive into the world of investing in Nigeria! Welcome to the exciting journey of exploring the stock market and potentially subscribing to the highly anticipated Dangote IPO.Now, you mentioned that you want to subscribe to the Dangote IPO througRead more
Great! Let’s start!
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Ah, my dear friend who’s eager to dive into the world of investing in Nigeria! Welcome to the exciting journey of exploring the stock market and potentially subscribing to the highly anticipated Dangote IPO.
Now, you mentioned that you want to subscribe to the Dangote IPO through Union Bank, but you noticed that the broker listed on the NGX (Nigerian Exchange Group) site is not Union Bank’s listed broker. So, what does this mean? Can a well-known bank like Union Bank use an unlisted broker for IPO subscriptions?
Well, let’s break this down in a way that Mama Ngozi with her ripe tomatoes can easily understand. Imagine you have your favorite spot in the market where you usually sell your fresh tomatoes. That spot guarantees you visibility, trust, and a steady flow of customers. Now, if for some reason, that spot is temporarily not listed on the market board, does it mean your tomatoes are any less fresh or sought after? Of course not!
Similarly, for Union Bank, not being listed under the named broker for the Dangote IPO doesn’t diminish its capabilities or trustworthiness. It could be that Union Bank is using a different arrangement for this particular IPO that isn’t publicly disclosed on NGX’s site. Large institutions like banks often have various partnerships and direct channels that may not be openly visible to retail investors like us.
So, rest assured, Union Bank, a well-established financial institution, can indeed work with brokers, whether listed or unlisted, to facilitate IPO subscriptions. This situation doesn’t necessarily raise red flags about Union Bank’s credibility or its ability to assist you in your investment journey.
Remember, in the world of investing, trust, relationships, and understanding your chosen path are key. Keep learning, stay curious, and don’t be afraid to seek clarification or guidance from professionals to make informed investment decisions. Your journey to financial empowerment has just begun, and with the right knowledge and mindset, you’re well on your way to reaping the fruits of your investments. Keep shining like the ripest tomato in the market, my friend!
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If you find the explanations unclear or if you need further help, please let me know!
See lessDon't worry. A bank is only the channel you use to subscribe. It is not the one buying the shares for you. Your concern is valid, but Union Bank not appearing on the NGX broker list is not, by itself, a problem. What's really happening: When you subscribe through Union Bank, the bank does not sell yRead more
Don’t worry. A bank is only the channel you use to subscribe. It is not the one buying the shares for you.
Your concern is valid, but Union Bank not appearing on the NGX broker list is not, by itself, a problem.
What’s really happening: When you subscribe through Union Bank, the bank does not sell you the shares directly. Behind the scenes, your order is passed on to a stockbroker, and that stockbroker connects it to CSCS (the Central Securities Clearing System), where your shares are kept. Apps and POS terminals work the same way. For example, some fintech apps route orders through Chapel Hill Denham.
If you subscribe through Union Bank, don’t assume that means Union Bank will be your stockbroker after the IPO. The shares and your eventual ability to trade them are handled through the capital-market infrastructure.
Iking Ferry explained this clearly in his post on Facebook. Please do well to read it for better understanding here’s the link to the post https://www.facebook.com/share/p/1C5z2wguGt/
See lessYes any bank is approved.
Yes any bank is approved.
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