By Dipo Olowookere
Food Concepts Plc, the parent company of one of the top Quick Service Restaurant (QSR) in Nigeria, Chicken Republic, is planning to raise a fresh capital to assist it boost its operations in the country.
Food Concepts is a firm listed on the NASD OTC Exchange and the company, which commenced operations in 2001, wants to raise the funds, about N3.6 billion through rights issue.
According to a regulatory note cited by Business Post at the weekend, Food Concepts hopes to use proceeds from the exercise to finance its growth and expansion.
It was disclosed that the rights issue would open on August 12, 2019 and run till August 23, 2019 and the provisional allotment is 11 new ordinary shares for every 28 ordinary shares of 50 kobo each held by shareholders of the firm at the close of business on May 17, 2019.
Business Post learned that Food Concepts is offering during the exercise a total of 5,831,553,981 ordinary shares of 50 kobo at 62 kobo per share, amounting to N3.6 billion.
The notice said the issuing house for the rights issue is FCMB Capital Markets Limited.
Since launching in 2004, Chicken Republic has already opened 55 stores in Nigeria and Ghana. The firm was ranked as one of Nigeria’s top 20 brands across all categories at the Financial Standards Awards 2009.
The company operates in a highly competitive market with Mr Biggs, Tantalizers, Tastee Fried Chicken, amongst others.
