VFD Group & Norrenberger Ink ₦50.67B Rights Issue to Fuel Pan-Africa Expansion
Detailed Breakdown
• Who & What:
VFD Group Plc and Norrenberger Limited (acting as the Lead Issuing House) have formalized a rights issue agreement worth ₦50.67 billion. The purpose is to bolster VFD’s capital base, reduce its debt burden, and accelerate its expansion into Southern Africa and the United Kingdom.
• Key Figures at the Signing:
Present at the Lagos signing ceremony were high-profile leaders including:
• Olatunde Busari (SAN) – Chairman, VFD Group
• Nonso Okpala – Group Managing Director, VFD Group
• Folajimi Adeleye – Executive Director, Finance & Investor Relations, VFD
• Gbeminiyi Shoda – Company Secretary, VFD
• Morenike Ominike – Executive Director, Operations, VFD
• Oladipo Olakunle-Jinadu – Director, Norrenberger Advisory
• Also in attendance was Muyiwa Akinyemi (Deputy MD, UBA)
• Offer Structure & Scale:
The rights issue consists of 5,067,396,400 ordinary shares (₦0.50 each), offered at ₦10 per share. This is based on a ratio of two new shares for every three existing shares held. After deducting costs, it’s expected to generate ~₦49.55 billion net.
• Intended Uses of the Proceeds:
• Debt reduction & balance sheet deleveraging
• Geographic expansion: Into UK and Southern Africa
• Deepening investment across key subsidiaries
• Enhanced liquidity and stronger leverage ratios
• Leadership Insights:
• Olatunde Busari described this rights issue as a “milestone” reaffirming shareholder confidence in VFD’s long-term vision.
• He recalled VFD’s ₦12.5 billion rights issue in 2024, which was fully subscribed, enabling the company to declare dividends and bonus shares in the same year.
• Nonso Okpala emphasized the group’s focus on core sectors: market infrastructure, capital markets, financial services, real estate, and fintech. He affirmed VFD’s ambition to build a pan-African ecosystem by leveraging subsidiary businesses across Africa.
• Future Vision:
The rights issue, if successful, is set to position VFD as a formidable investment group with wider reach, stronger capital, and a diversified portfolio. The company believes this capital raise will unlock new opportunities across high-growth sectors and geographies.
Detailed Breakdown
• Who & What:
VFD Group Plc and Norrenberger Limited (acting as the Lead Issuing House) have formalized a rights issue agreement worth ₦50.67 billion. The purpose is to bolster VFD’s capital base, reduce its debt burden, and accelerate its expansion into Southern Africa and the United Kingdom.
• Key Figures at the Signing:
Present at the Lagos signing ceremony were high-profile leaders including:
• Olatunde Busari (SAN) – Chairman, VFD Group
• Nonso Okpala – Group Managing Director, VFD Group
• Folajimi Adeleye – Executive Director, Finance & Investor Relations, VFD
• Gbeminiyi Shoda – Company Secretary, VFD
• Morenike Ominike – Executive Director, Operations, VFD
• Oladipo Olakunle-Jinadu – Director, Norrenberger Advisory
• Also in attendance was Muyiwa Akinyemi (Deputy MD, UBA)
• Offer Structure & Scale:
The rights issue consists of 5,067,396,400 ordinary shares (₦0.50 each), offered at ₦10 per share. This is based on a ratio of two new shares for every three existing shares held. After deducting costs, it’s expected to generate ~₦49.55 billion net.
• Intended Uses of the Proceeds:
• Debt reduction & balance sheet deleveraging
• Geographic expansion: Into UK and Southern Africa
• Deepening investment across key subsidiaries
• Enhanced liquidity and stronger leverage ratios
• Leadership Insights:
• Olatunde Busari described this rights issue as a “milestone” reaffirming shareholder confidence in VFD’s long-term vision.
• He recalled VFD’s ₦12.5 billion rights issue in 2024, which was fully subscribed, enabling the company to declare dividends and bonus shares in the same year.
• Nonso Okpala emphasized the group’s focus on core sectors: market infrastructure, capital markets, financial services, real estate, and fintech. He affirmed VFD’s ambition to build a pan-African ecosystem by leveraging subsidiary businesses across Africa.
• Future Vision:
The rights issue, if successful, is set to position VFD as a formidable investment group with wider reach, stronger capital, and a diversified portfolio. The company believes this capital raise will unlock new opportunities across high-growth sectors and geographies.