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The Nigerian Exchange Group has said it intends to use a rights issue to generate an additional N10 billion in funding.
The firm, which operates Nigeria's top exchange, stated in an announcement for its annual general meeting that the move was contingent upon shareholder and regulatory approval.
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," as it would be listed as part of the special business to be transacted at its AGM later this month.
“That the company 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.”
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.”
