SEC Approves N12.499bn VFD Group Rights Issue

VFD Group Plc said it has received approval from the Securities & Exchange Commission (SEC) for its proposed rights issue of 63.342 million ordinary shares of 50 kobo each at N197.33 per share.

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

This was made known in a notice signed by the group company secretary, Gbeminiyi Shoda. It 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, on the basis of one new ordinary share for every three existing ordinary shares held.”

It added that, the qualification date for the rights issue is October 12, 2023 and the application list opened on December 20, 2023 as approved by the Commission and shall open for a maximum period of 31 days.”

In 2021, VFD Group had successfully raised additional capital of N4.1 billion through a rights issue to support ongoing expansion plans.

It will be noted that the company received an award for the “Equity Listing of the Year” at the annual NGX Made of Africa Awards. The award was in recognition of the listing of VFD Group on October 6, 2023. The listing of VFD Group’s shares added N46.5 billion to the market capitalisation at NGX, further boosting liquidity in the Nigerian capital market and providing more opportunities for wealth creation.

Group managing director, VFD Group, Nonso Okpala said the award was a worthy recognition and would further motivate the group to contribute more to the market.

He commended the leadership of the Exchange for the foresight in positioning the Exchange for the future, saying, “one of the remarkable initiatives, from our perspective, 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 enforcement these companies bring. This development will undoubtedly enhance trust in the market, leading to increased participation and involvement, which will ultimately be beneficial for the economy.”

Chairman, VFD Group, Olatunde Busari, at a meeting, outlined the group’s strategic growth plan to its shareholders with a commitment that the group will consolidate on existing businesses and seek out cross-border opportunities to drive growth in the years ahead.

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

According to him, the Group would also focus on consolidating its existing business interests and drive its vision of becoming a commercially viable proprietary investment company with global influence.

To him  “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 ring-fence stakeholder value chain.”