By Dipo Olowookere
The Nigerian Stock Exchange (NSE) has given an approval to the board of Nigeria Police Force Microfinance Bank to embark on a rights issue and public offering.
The approval for the two exercises was given to the financial institution on Thursday, September 26, 2019, Business Post confirmed from a regulatory note sighted by us.
NPF Microfinance Bank wants a rights issue of 2,286,657,766 ordinary shares of 50 Kobo each at N1.50 per share on the basis of one new ordinary share for every one ordinary share held as at September 12, 2019 and a public offer of 713,342,234 ordinary shares at N1.50 per share.
From the document, stockbroker for the exercise is Regency Asset Management Limited, while Cowry Asset Management Limited is the lead issuing house, with CardinalStone Partners Limited, FCSL Asset Management Company Limited and Lead Capital Plc serving as the joint lead issuing houses.
An earlier report by Business Post had said the company was granted the approval by its shareholders to source for fresh funds from new investors through a public offering.
This authorisation was obtained by the board 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.
At the gathering, the shareholders approved the creation of fresh 3 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 also told 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.
Earlier last month, a circular signed by Ms Lilian Dako, for the Head of Listings Regulation Department at NSE, had disclosed that the firm made a submission through its stockbroker, Regency Asset Management Limited to raise the sum of N3.430 billion from rights issue with a qualification date of Thursday, September 12, 2019.
In the last financial year, NPF Microfinance Bank rewarded its investors with a dividend payout of 5 kobo per share.
