‘VFD Group’s N50bn Rights Issue Will Strengthen Capacity, Boost Share Value’

VFD Group Plc has said its N50 billion rights issue will harness new growth opportunities and boost shareholders’ returns.

Recall that the company raised funds through a rights issue of 5.067 billion ordinary shares, valued at N50.067 billion at N10.00 per share. The rights issue, which was subscribed to by existing and new shareholders, achieved 100 per cent subscription, mainly from existing shareholders, who accounted for 88 per cent of investors.

Following this regulatory approval, the shares would be credited to the depository accounts of shareholders with the Central Securities Clearing System (CSCS), and would subsequently be available for trading in the secondary market on the main board of the Nigerian Exchange.

VFD Group stated that “following the successful closure of this N50.1 billion rights issue, it is poised to harness the potential of its ecosystem, with renewed capacity to upscale existing business verticals whilst incubating new growth stars.

“On the back of the news of regulatory approval to the successful rights issue, the share price for two consecutive days, closing at N12.50 per share on March 13, 2026, translating to a 25 per cent gain for shareholders who bought the rights issue shares at N10.00 per share.”

Speaking, the group chief executive officer, Nonso Okpala, noted, “We are thrilled by the success of our rights issue, and we appreciate the confidence of our esteemed shareholders in our ability to execute on our next growth strategies aimed at positioning VFD Group as a leading investment holding company in Africa. Our mission is to fill the immense vacuum across many sectors of the economy and in doing so, we create unparalleled value for our shareholders.”

He noted that the proceeds of the rights issue would allow the company to upscale its flagship businesses, recapitalise all capital market-related entities in line with new regulatory requirements and accelerate its business incubation programme, saying that “with a few potential unicorns in our portfolio, we are building an incredible ecosystem that would deliver sustainable and superior value to our shareholders in the short and long term.”

The executive director, Finance, Folajimi Adeleye, said, “The success of the offer is a testament of investor confidence in the Group’s leadership, and we do not take it for granted. More than ever, we are committed to our vision and values of disciplined investment and effective risk management. This increased capitalisation would support our effort to scale and drive efficiency across our ecosystem and, of course, enhance our returns on equity, as we seek to sustainably deliver superior value to our distinguished shareholders.