By Dipo Olowookere
The board of Nigeria Police Force (NPF) Microfinance Bank Plc has secured the approval of shareholders for the sale of additional shares of the company to new investors.
This authorisation was obtained 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.
“That the directors of the company be and are hereby authorised to offer to the general public and any other investor three billion units of its authorised share capital by a combination of rights issue and public offer on a date and at a price to be determined by them, subject to the approval of the regulatory authorities,” one of the resolutions of the shareholders at the AGM read.
Another said, “That the directors of the company be and are hereby authorised to allot the shares on offer in line with regulatory requirement.”
“That the directors of the company be and are hereby authorised to take all necessary steps and do all that is required to list the new shares of the company on the floor of the Nigerian Stock Exchange (NSE) at a date to be determined by them,” the shareholders further declared.
At the stock market on Tuesday, shares of NPF Microfinance Bank were traded at N1.29k per unit, the same amount they were exchanged the previous day.
Business Post reports that at the moment, the microfinance institution has a market capitalisation of N2.95 billion, with shares outstanding of 2.29 billion units.
The creation of the new shares would increase the company’s shares outstanding to 5.29 billion units and the market capitalisation to about N6.82 billion if its share price remains at the present level.
