Ikeja Hotel Plc’s shareholders have given their approval for the company to raise more funds through a rights issue of 1.133 billion units and N346 million worth of bonus shares.
The Punch reported that this information was made public on Wednesday in a corporate filing with the Nigerian Exchange Limited in connection with the special resolutions adopted at the organization’s most recent annual general meeting.
On Wednesday, the local stock exchange saw the shares of Ikeja Hotel conclude trading at N3.13. The additional capital to be raised may be in the neighborhood of N3.5 billion, even if the rate of the rights issuance had not yet been determined.
The following resolution was adopted by the shareholders: “That additional capital be raised by the issuance of 1,133,888,945 units of unissued shares of the company as a rights issue at the rate to be determined by the board of directors to existing shareholders based on six new ordinary shares for every 11 ordinary shares held in the company to members on the register of members as at December 13, 2022, based on the 2022 audited accounts of the company.”
Additionally, shareholders approved the issuing of bonus shares to members on the register of members, amounting to 692,932,133 units at 50k each and costing a total of N346,466,066.5, to be deducted from the company’s retained earnings in the audited accounts for 2022.
The group’s sales decreased by 33.73 percent to N4.567 billion from N6.89 billion during the first six months of 2023, according to its unaudited consolidated financial records.
Ikeja Hotel’s revenue increased to N12.8 billion in its 2022 financial report from N9.8 billion in the same period of 2021 thanks to corporate governance standards and an enhanced operational model followed by the hotel’s new board.
In contrast to its N1.1 billion profit in 2021, the group experienced an operating loss of N2.4 billion in 2022.
Speaking to shareholders at the 46th AGM, the Chairman of Ikeja Hotel Plc, Anthony Idigbe, said the decline was principally brought on by the company’s separation from Capital Hotel Plc, as well as the impact of COVID-19 on the industry and other difficulties.
“High levels of corporate governance standards are fundamental to the sustainable operation of any corporate organization, it has been established,” he stated.
“The board is committed to making sure that directors continue to contribute significantly to the success of the company.
“We remained firm in our commitment to offering a safe and outstanding guest experience even as the sector suffered unprecedented closures and plummeting occupancy rates.”
