LAGOS, Nigeria (VOICE OF NAIJA) – The Nigerian Exchange Group (NGX Group) has announced plans to raise approximately N10 billion in additional capital through a rights issue.
The group, which hosts Nigeria’s premier exchange, announced in its Annual General Meeting (AGM) notice that the proposal awaits approval from shareholders and regulatory authorities.
Included among the agenda items for its upcoming AGM later this month, shareholders will have the opportunity to 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.
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“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 shareholders 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.”
Shareholders will also need to deliberate and vote on amending Clause 6 of the Company’s Memorandum of Association to reflect the increased share capital of N1,347,309,954. This includes the addition of 490,000,000 ordinary shares priced at N0.50 each, resulting in a total share capital of N1,347,309,954, comprised of 2,694,619,907 issued ordinary shares priced at N0.50 each.
In its audited 2023 results, NGX Group disclosed a post-tax profit of N5.2 billion and recommended a final dividend of N1.5 billion.
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The group saw an increase in gross earnings, soaring by 57.4 percent to N11.8 billion in 2023 from N7.5 billion in 2022. This growth was fueled by strong performances in core revenue and other income segments. Notably, transaction fees surged by 52.6 percent due to heightened trading activities, while listing fees and rental income jumped by 42.2 percent and 41.8 percent, respectively. Strategic investments also played a role, contributing to a 5.4 percent increase in treasury investment income.
Regarding the 2023 results, the Group Chief Executive Officer of NGX Group, Temi Popoola, expressed satisfaction with the operational performance of the company.
“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.