VFD Group Plc N12.499 Billion Right Issues Get Approval From SEC

VFD Group Plc, which won NGX Listed Company of the Year, recently announced that it has gotten approval from the Securities and Exchange Commission (SEC) for its proposed rights issue of 63.342 million ordinary shares of 50 kobo each at N197.33 per share.

The firm rights issue valued at N12.499 billion is based on one new ordinary share for every three existing ordinary shares held as of the close of business on October 12, 2023.

The announcement was made in a notice signed by the group company secretary, Gbeminiyi Shoda, where he stated that,

• VFD Group Plc is pleased to notify its shareholders, stakeholders, Nigerian Exchange, and the general public that the Company has obtained approval from the Securities Exchange Commission to offer to the shareholders the proposed rights issue of 63.342 million ordinary shares of 50 kobo each at N197.33 per share based on one new ordinary share for every three existing ordinary shares held.

The statement also added that the qualification date for the rights issue was October 12, 2023, and the application list opened on December 20, 2023, as approved by the commission, and will open for a maximum period of 31 days.

VFD Group raised an additional capital of N4.1 billion in 2021 through a rights issue to support its ongoing expansion plans. Also, the firm emerged as NGX Listed Company of the Year. Because of its record, VFD Group added N46.5 billion to the market capitalization at NGX, which boosted liquidity at the Nigerian capital market and created wealth creation for investors.

Speaking on the award from NGX, Nonso Okpala, the Group managing director of VFD Group, said that the award was a great step in recognizing the potential of the group's participation in the market.

He commended the leadership of the Exchange for its foresight in positioning the Exchange for the future. 

He added,

• From our perspective, one of the remarkable initiatives is the creation of the investment company category.

• This is a revolutionary step for the exchange, and we believe it will have a positive impact as the market recognizes the capacity and potential returns, along with the governance and enforcement these companies bring. This development will undoubtedly enhance trust in the market, leading to increased participation and involvement, ultimately benefiting the economy.

He also thanked the NGX leadership for their strength in putting the exchange on the right path towards greater results in the future.

In a meeting, the Chairman of VFD Group, Olatunde Busari, described the group’s growth plan to its shareholders and pointed to its plan to extend its services globally to boost its growth.

He said the group remains optimistic about the general outlook and will position itself to take advantage of opportunities during the year.

He said,

• We will continue to seek cross-border opportunities that enable us to access new markets to help us aggregate the service offerings of our existing portfolio companies and collaborations outside our ecosystem to build a platform that allows us to ring-fence the stakeholder value chain.