• Thursday, May 23, 2024
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The VFD Group raises N12.5bn, lists additional shares on the NGX

The VFD Group raises N12.5bn, lists additional shares on the NGX

The Nigerian Exchange Limited (NGX) has listed VFD Group Plc’s Rights Issue of 63,342,455 ordinary shares of 50 kobo each, valued at N197.33 per share, culminating in a total value of N12.499 billion.

This strategic listing significantly bolsters VFD Group’s presence on the NGX, following the company’s recent listing of 190 million units of shares at N244.88 per share, which added N46.527 billion to the NGX market capitalization.

The Security and Exchange Commission (SEC) approved the rights issue, which allocated one (1) new ordinary share for every three (3) existing ordinary shares as of 12 October 2023. The initiative illustrates both the strength of VFD Group’s financial position and its commitment to fostering liquidity in the Nigerian capital market.

In December 2023, VFD Group revealed that the SEC had approved its rights issue. As a result, the Rights Issue commenced on December 20th, 2023, with a 31-day duration. Shareholders were informed through rights circulars and application forms facilitated by United Capital Plc, the leading issuing house, Kairos Capital Limited, and participating stockbroking firms which include TRW Stockbrokers Limited, Cowries Securities and Anchoria Investment & Securities Limited,

With the listing of these additional shares, VFD Group Plc’s total issued and fully paid-up shares have surged from 190,027,365 to 253,369,820 ordinary shares of 50 kobo each. This expansion reflects the company’s aggressive growth strategy and its dedication to enhancing shareholder value.

According to Nonso Okpala, Group Managing Director and Chief Executive Officer of VFD Group Plc, “The successful closure of this Rights Issue, eagerly embraced by our shareholders, is a testament to the unwavering trust and confidence they place in our strategic direction and operational resilience. We are grateful for the approval from the Securities Exchange Commission (SEC) and the continuous support from the Nigerian Exchange Limited.”

Talking about the significance of the rights issue, Nonso added, “Our objective with this rights issue is to further strengthen our market position and enhance our capacity to drive growth and innovation, particularly in the realm of exchange businesses. We believe that by expanding our capital base, we can better serve our stakeholders and contribute to the development of Nigeria’s financial markets.”

This listing is a strategic move by VFD Group to enhance its visibility, access to capital, and liquidity, ultimately benefiting its esteemed investors and stakeholders. As VFD Group continues to expand its portfolio across various sectors, it remains committed to building positive and socially conscious ecosystems that contribute to the socioeconomic development of Nigeria.