Investment company VFD Group has announced plans to raise fresh capital amounting to N32.5 billion through a combination of equity and debt, following approval from its shareholders.
According to Premium Times, the Lagos-based firm, which operates in various sectors including banking, real estate, energy, hospitality, and technology, intends to secure N12.5 billion from stockholders through a rights issue.
The remaining N20 billion will be sourced through debt issuance, with the specific instrument (bond or commercial paper) yet to be determined.
The proceeds from the rights offering are expected to drive VFD Group’s initiatives to enhance shareholder value, strengthen its market position, and pursue strategic growth objectives through new investment opportunities.
A the end of the previous year, the company had N36.2 billion in funds under management, relying on short-term debts from customers and equity to support its operations. It currently holds 41 portfolio investments spanning nine sectors.
VFD Group is also gearing up for the listing of its shares on the Nigerian Exchange by way of introduction. Once regulatory requirements are met, its 190 million shares, which are currently traded over the counter on the NASD Securities Exchange in Lagos, will be delisted and quoted on the NGX.
The anticipated listing is expected to increase the NGX’s market capitalization by approximately N46.5 billion, based on VFD Group’s closing share price of N244.9 on Tuesday.
In February, VFD Group acquired a 5.2% equity stake in the Nigerian Exchange Group, positioning itself as a significant shareholder in the company.
The company’s financial performance in 2022 demonstrated growth, with post-tax profit increasing from N3.1 billion to N7.1 billion and revenue surging by 86.8% to N33.8 billion.
