VFD Group proposes 25 kobo dividend as Rights Issue subscribers earn strong returns

The Board of Directors of VFD Group Plc has proposed a final dividend of 25 kobo per share, translating to an annualised return of 10 percent for shareholders who participated in the December 2025 rights issue at N10 per share.

The proposed dividend is subject to shareholder approval at the upcoming Annual General Meeting (AGM). “The qualification date, payment date, and formal AGM notice will be communicated to shareholders in due course”, the company noted.

Dividends remain an important component of shareholder returns, particularly for investors seeking periodic cash flow. However, for growth-oriented companies, capital appreciation often represents the primary driver of long-term value creation.

VFD group is a leading principal investment firm listed on the Nigerian Exchange (NGX). The group invests in and manages a diverse portfolio across five critical verticals, including financial services, retail technology, capital market infrastructure, market operations as well as real estate and hospitality with a focus on building Africa’s most valuable ecosystem of businesses.

VFD Board maintains a balanced approach of rewarding shareholders in the short term, while retaining sufficient earnings to fund future growth and enhance overall valuation.

When VFD Group launched its rights issue in late 2025, it provided shareholders with an opportunity to subscribe to new ordinary shares at N10 per share to support the Group’s next phase of expansion. This represented a highly attractive entry point.

“This is ultimately about trust and execution. Our shareholders backed us at a pivotal moment, and what we are demonstrating is our ability to convert that confidence into measurable value. Even before deploying the new capital, we are delivering strong returns,” said Nonso Okpala, Group Managing Director/CEO, VFD Group Plc.

“Beyond this performance, we are equally focused on consistency. Our ambition is to build a track record of disciplined and sustainable dividend payments, supported by strong earnings and long-term value creation,” said Okpala.

Since the close of the rights issue, the Group’s share price has appreciated to approximately N12, reflecting a 20 percent gain year-to-date (YtD).

The Board of Directors proposed a final dividend of 25 kobo per ordinary share for the financial year ended December 31, 2025 which amounts to a total payout of approximately N3.2 billion representing a payout ratio of 32.2 percent.

The Board remains committed to a clear objective which is to grow dividend payouts consistently over time, both in absolute terms and on a per-share basis, as returns from the expanded portfolio materialise.

For rights issue participants, this equates to a 10 percent annualised return on their N10 entry price, an attractive return given current market conditions.

“From a capital allocation perspective, this outcome reflects both discipline and timing,” said Folajimi Adeleye, Executive Director, Finance & Investor Relations.

“We have delivered strong returns without yet deploying the rights issue proceeds, which underscores the earnings strength of the existing portfolio. As we begin to deploy this capital into yield-generating opportunities, we expect to further enhance returns and sustainably grow shareholder value,” said Adeleye.

The investment case is compelling…

A N10 investment made in December 2025 is now valued at N12 and delivers 25 kobo in dividend income, representing a strong total return over a relatively short holding period.

Positioned for continued growth…

The proposed dividend comes at a time when the Group’s enlarged capital base is yet to be fully deployed. Notably, regulatory approval from the SEC for the rights issue proceeds was only obtained in March 2026, meaning that the capital raised has not yet been invested.

Importantly, the returns currently being realised by shareholders have been generated entirely from the Group’s existing earnings base, prior to the deployment of new capital. This underscores the strength of VFD Group’s underlying business and its ability to create value even before the next growth phase begins.

“The real story is what comes next. We are entering a phase where capital meets opportunity at scale. Our focus is on deploying efficiently, managing risk rigorously, and ensuring that every naira works to compound value across the ecosystem. That is how we build enduring shareholder wealth,” added Okpala.

“This speaks to the strength of our existing platform and the discipline with which we run the business,” he said.

As the rights issue proceeds are deployed into yield-generating investments, and the portfolio matures, the Group expects its earnings capacity, and consequently its dividend-paying ability, to strengthen further.