Dipo Olowookere
By Dipo Olowookere
The N3.234 billion rights issue of C&I Leasing Plc has received the approval of the Securities and Exchange Commission (SEC), the apex regulator in the Nigerian capital market.
C&I Leasing considered this option of fund raising so as to recapitalise and expand the business operations of the company so as to give more value to shareholders.
This was echoed by the Managing Director/CEO of the firm, Mr Andrew Otike-Odibi, at the 28th Annual General Meeting (AGM) in Lagos in July 2019.
According to him, “The business is at a point where we need equity injection and management is working with financial advisers to look at different options that we can use to raise equity.
“One, it might be a rights issue. So, we might be calling on you very soon to support the business by taking up your rights and getting capital into the business to help the business grow to new heights.”
Some weeks after addressing shareholders of the company at the AGM, the board of C&I Leasing filed an application to the Nigerian Stock Exchange (NSE) on its intention to conduct a rights issue. The company also informed SEC about this.
Not too long ago, the SEC approval was obtained and the board has said it might begin to sell 539,003,333 ordinary shares of 50 kobo each of the firm at N6 per unit from Monday, November 11, 2019. This sale would be on the basis of four new ordinary shares for every three ordinary shares held by investors as at the close of business on Wednesday, September 4, 2019.
However, it emphasised that the November 11 date for commencement of the exercise was still shaky because SEC could fix another date for this. But it stated that the rights issue would remain open for a maximum period of 28 days.
“C&I Leasing Plc is pleased to notify its esteemed shareholders, stakeholders, the Nigerian Stock Exchange (NSE) and the general public, that the company has obtained an approval from the Securities Exchange Commission (SEC) to conduct the signing ceremony with regards to the proposed rights issue of 539,003,333 ordinary shares of 50 kobo each at N6.00 per share, on the basis of four new ordinary shares for every three ordinary shares held. The qualification date for the rights issue is Wednesday, September 4, 2019.
“Subject to the approval of the executed offer documents by the SEC, the application list is expected to open on the November 11, 2019 or any other date approved by the commission and shall open for a maximum period of 28 days.
“Rights circular will be distributed to shareholders while application forms would also be made available on the website of the company’s registrars for ease of access.
“Esteemed shareholders are advised to contact their stockbrokers and other financial advisers for more details on the offer,” the notice from the company stated.
