The Nigerian Exchange Group (NGX Group), the country’s main stock exchange, has revealed its readiness to raise an additional N10 billion in capital. This plan was revealed in a notice for their upcoming Annual General Meeting (AGM) scheduled for later this month.
The proposal hinges on approval from both shareholders and regulatory bodies. Shareholders will be asked to vote on the plan, which involves a rights issue – a method of raising capital by offering existing shareholders the first chance to buy new shares at a discounted price.
“The company seeks to raise capital of up to N10 billion by way of a Rights Issue, through the issuance of ordinary shares,” the notice stated. The exact terms and timing of the rights issue will be determined by the board of directors.
The notice also detailed potential scenarios in case of under-subscription, where not all offered shares are purchased by existing shareholders. In such a case, the board would be authorized “to offer/issue any unsubscribed shares at a price not less than that specified in the Rights Issue Circular.”
The AGM will also see shareholders vote on amending the company’s Memorandum of Association to reflect the potential increase in share capital. This would involve adding 490 million new ordinary shares, bringing the total issued ordinary shares to over 2.6 billion.
The move for additional capital comes on the back of a positive financial year for NGX Group. Their audited results for 2023 revealed a healthy profit after tax of N5.2 billion. Shareholders will also be asked to vote on a proposed final dividend payout of N1.5 billion.
