Dipo Olowookere
By Dipo Olowookere
Some weeks ago, Business Post reported that the management of C&L Leasing was considering raising fresh capital and recapitalising its capital base so as to perform better.
Managing Director/CEO of the firm, Mr Andrew Otike-Odibi, had hinted that the capital raising would be done through rights issue “for the purpose of business expansion, loan refinancing and working capital need.” READ IT HERE
To begin the process, the stockbroker of C&I Leasing, CSL Stockbrokers Limited, has filed an application to the Nigerian Stock Exchange (NSE) for an approval and eventual listing of the rights issue on the trading platform of the exchange.
Business Post gathered that the company is planning to issue a total 539.003 million ordinary shares of 50 kobo at N6.00 each on the basis of four new ordinary shares for every three ordinary shares held.
Confirming this today in a circular, the Head of Listings Regulation Department at the NSE, Mr Godstime Iwenekhai, said the company has fixed the qualification date for the exercise for Wednesday, September 4, 2019 (today).
“Dealing members are hereby notified that C&I Leasing Plc has through its stockbroker, CSL Stockbrokers Limited, submitted an application to the Nigerian Stock Exchange (NSE) for the approval and listing of a rights issue of 539,003,333 ordinary shares of N0.50 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 today, Wednesday, September 4, 2019,” the circular stated.
In the first half of 2019, C&I Leasing improved its gross earnings by 27.2 percent to N16.3 billion from N12.8 billion in H1 2018. This was mainly driven by the growth in the firm’s lease rental income by 70.6 percent of total gross earnings.
Net operating income increased by 24.7 percent to N4.6 billion in H1 2019 (H1 2018: N3.7 billion), underscoring the growth in gross earnings across the various business units.
Interest income, other operating income and share of gain from marine joint venture grew 3.4 percent to N704.6 million in H1 2019 (H1 2018: N681.5 million), largely driven by returns from the company’s marine business.
Profit before tax went up 25.8 percent year-on-year to N909.2 million from N723.0 million, while the profit after tax increased by 27.1 percent year-on-year to N866.9 million from N682.2 million.
