NGX Group Plans N10bn Capital Raise Via Rights Issue

The Nigerian Exchange Group has indicated plans to raise about N10bn in additional capital via a rights issue.

In a notice of Annual General Meeting, the group, which houses the premier exchange in Nigeria said the proposal was subject to shareholders and regulatory approval.

Listed as part of the special business to be transacted at its AGM later this month, shareholders would vote “to raise capital of up to N10bn by way of Rights Issue, through the issuance of ordinary shares, on such other terms and conditions and at such time, as the Directors may deem fit or determine.

“ii. That the Company be and is hereby authorised to increase its share capital from N1,102,309,954 to N1,347,309,954 (or to otherwise increase its share capital to an amount sufficient to accommodate the Rights Issue). That in the event of an under-subscription of shares at the Rights Issue, the shareholder  hereby authorise the Directors to offer/issue any unsubscribed shares at a price not less than that specified in the Rights Issue Circular, in such manner as is beneficial to the company.”

The shareholders would also have to consider and vote on the amendment of Clause 6 of the Company’s Memorandum of Association be amended to reflect the new share capital of N1,347,309,954 by the addition of 490,000,000 ordinary shares of N0.50 each bringing the company’s total share capital to N1,347,309,954 made up of 2,694,619,907 issued ordinary shares of N0.50 each.

In its audited results for 2023, NGX Group announced a profit after tax of N5.2bn and proposed a final dividend of N1.5bn.

The group experienced a surge in gross earnings, rising by 57.4 per cent to N11.8bn in 2023 from N7.5bn in 2022. This growth was attributed to performances in core revenue and other income segments. Notably, transaction fees rose by 52.6 per cent, driven by increased trading activities, while listing fees and rental income increased by 42.2 per cent and 41.8 per cent, respectively. Strategic investments also contributed to a 5.4 per cent boost in treasury investment income.

Commenting on the 2023 results, the Group Chief Executive Officer, NGX Group, Temi Popoola, expressed satisfaction with the company’s operational performance.

“I’m pleased with the significant improvement in NGX Group’s operational performance. We have witnessed notable increases in transaction and listing fees, as well as in rental and treasury investment income”. Popoola said.

Olusola Akintonde/Punch