Lagos — Stock brokers and investors have endorsed Crusader (Nigeria) Plc's convertible debenture and rights issue currently on offer projecting oversubscription.

Speaking at the comp-any's investors' forum held in Lagos , Mr. Seun Oluwole, a broker who spoke in place of the Doyen of Stock brokers, encouraged the investors not to allow the current loss in the Nigerian Stock Exchange market stop them from buying into the Crusader offers.

Crusader Nigeria Plc, formerly Crusader Insurance Nigeria Plc, a four weeks ago after its completion board meeting, postponed it planned 1.2 billion shares public offer following the recent loss of investors' excitement in the Nigerian stock market after about two months sustained bearish trend.

The company however announced a 797,884,198 ordinary shares of 50 Kobo each rights issue at N4.50 per share and N4 billion unsecured convertible debenture stock at 12 percent annual interest rate till 2013. The offer will see the group raise about N7 billion.

He explained that the experience is not peculiar to Nigeria alone but has happened in other climes, adding that the market will soon rebound.

He advised the investors to have trust in the company's board of directors and the management team adding that these are the factors that will determine the profitability of any company.

The MD, Mr. Olusola Mobolurin, had said at the meeting that the purpose of the capital raising exercise is to enable the company create a strong and fully diversified financial service group providing one stop financial service solutions to its clientele.

The proceed, according to him, would be used to finance the acquisition of new businesses, expansion of its existing businesses and products, expansion of its distribution network and upgrading its information technology infrastructure.

According to Mr. Seun Oluwole, the company shares value at the market floor before it was placed on technical suspension has grown consistently, stressing that the rationale behind the growth could be attributed to the company's visionary leaders and their decision to go beyond insurance into real estate and other financial services.

Also speaking at the forum, Chief Sunny Nwosu, president, Independent Shareholders Association who was represented by Mr. Olusegun Adedapo, said the company's financial antecedents would guarantee that the investors would soon be scrambling for the offer.

While commending the integrity of the company's Group Managing Director, Mr. Olutola Mobulurin, which he said has robbed on the performance of the company, Mr. Adedapo enjoined the investors not to doubt the company's promise of 12 per cent interest per annum over the Crusader Convertible Debenture.

The President, Nigerian Shareholders Solidarity Association also endorsed the offer saying that he has made up his mind to increase his holdings in Crusader through the Rights while he enjoined all other shareholders not to relent in taking in full, their rights in the offer.