NPF MfBank Wants Regulatory Approval for N3.430bn Rights Issue

By Dipo Olowookere

The board of Nigeria Police Force (NPF) Microfinance Bank Plc has filed an application to authorize the issuing of fresh shares to existing shareholders of the company through a rights issue.

This approval being sought for is from the Nigerian Stock Exchange (NSE), whose platform the insurer’s shares are traded by investors at the market.

A circular signed by Ms Lilian Dako, for the Head of Listings Regulation Department at NSE, disclosed that the submission was made by the firm through its stockbroker, Regency Asset Management Limited.

NPF Microfinance Bank hopes to raise the sum of N3.430 billion from the exercise, which has a qualification date of Thursday, September 12, 2019 (today).

During the exercise, a total of units of 2,286,657,766 ordinary shares of 50 kobo each of the company’s shares would be sold at N1.50k each on the basis of one new ordinary share for every one ordinary share held by investors.

“Dealing members are hereby notified that NPF Microfinance Bank Plc has through its stockbroker, Regency Asset Management Limited, submitted an application to the Nigerian Stock Exchange for the approval and listing of a rights issue of 2,286,657,766 ordinary shares of N0.50 each at N1.50 per share, on the basis of one new ordinary share for every one ordinary share held.

“The Qualification Date for the Rights Issue is today Thursday, 12 September 2019,” the circular said.

Business Post recalls at the lender’s Annual General Meeting (AGM) held on Thursday, July 25, 2019 at the Ibom Hotel and Golf Resort, Uyo, Akwa Ibom State, shareholders approved the creation of fresh three billion units of the company’s stocks, which could be sold via rights issue or public offer or both, depending on what the board decides.

The board was told then to use its discretion to fix a date it would offer the new equities as well as the price each would be sold. After issuing the shares, the board was further told to determine when they should be listed on the local bourse.

Dipo Olowookere is a journalist based in Nigeria that has passion for reporting business news stories. At his leisure time, he watches football and supports 3SC of Ibadan. Mr Olowookere can be reached via dipo.olowookere@businesspost.ng

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