Investment company VFD Group will tap the capital market to raise fresh cash through a blend of equity and debt totalling N32.5 billion after shareholders greenlighted the move, the company said in a statement Tuesday.
The Lagos-based firm, with tentacles in sectors as varied as banking, real estate, energy, hospitality and tech, plans to source N12.5 billion from stockholders via a rights issue.
The remaining sum of N20 billion will come from a debt issuance still in the works. No mention has been made as to whether raising that will take the route of bond or commercial paper.
Proceeds from the rights offering are at the heart of VFD Group’s plan to “increase shareholder value, strengthen its market position, and support its strategic growth objectives through new strategic investment opportunities,” the document stated.
The group, which relies on short-term debts from customers and equity to fund its operations, had N36.2 billion in funds under management as of the end of last year.
It has 41 portfolio investments in nine sectors, according to the information on its website.
The push is coming when the company is setting its sights on listing its shares on the Nigerian Exchange (NGX) by way of introduction, with management now watching out for the right moment to make it happen.
Its 190 million shares, currently traded over the counter on the NASD Securities Exchange in Lagos, will be delisted and quoted on the NGX once regulatory hurdles are scaled.
“Listing on a major stock exchange will give us access to a larger pool of investors, enhance our profile, and provide superior returns to our investors,” CEO Nonso Okpala said in June.
The listing could add over N46.5 billion to the NGX’s market capitalisation, going by VFD Group’s closing share price of N244.9 on Tuesday.
Last February, the group acquired an equity stake of 5.2 per cent in the Nigerian Exchange Group to rank among the latter’s substantial shareholders.
Post-tax profit for 2022 grew to N7.1 billion from N3.1 billion a year earlier, while revenue jumped 86.8 per cent to N33.8 billion.
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