Dipo Olowookere
By Dipo Olowookere
A prominent outsourcing firm in Nigeria, C&I Leasing Plc, is issuing bonus shares to its shareholders, a statement signed by the company secretary disclosed.
A bonus share is the issuance of additional stocks to existing shareholders of the company at no extra cost. It is given to encourage retail participation and increase the equity base of investors, though the value of the stocks is diluted.
In the notice filed to the Nigerian Exchange (NGX) Limited, the company stated that it would be offering two free shares for every three stocks held by investors.
“A bonus issue of two ordinary shares for every three ordinary shares held will be credited to shareholders whose names appear in the register of members as at the close of business on Thursday, January 4, 2024,” a part of the disclosure stated, noting that the register will be closed the next day.
C&I Leasing has grown to be one of the largest equipment leasing and rental companies in Nigeria, though it has had a roller-coaster ride, especially on the stock exchange.
In July 2022, trading in the shares of the organisation was suspended by NGX Regulation over its failure to file its financial statements.
But after filing the results, the embargo was lifted, allowing investors to buy and sell the company’s shares again on the bourse without hassle.
In a circular issued on Friday, July 29, 2022, the local bourse confirmed that “the suspension placed on trading on the shares of C&I Leasing” has been lifted.
Business Post reports that at the stock market on Tuesday, the shares of C&I Leasing appreciated by 9.97 per cent or 34 Kobo to close of N3.75 versus the previous day’s closing value of N3.41.
