Dipo Olowookere
By Dipo Olowookere
One of the companies listed on the trading platform of the Nigerian Exchange (NGX) Limited, FTN Cocoa Processors Plc, is offering an opportunity to its shareholders to increase their number of stocks in the organisation.
FTN Cocoa is proposing to make this possible through a rights issue, a system where existing shareholders of a firm acquire more stocks of the company for a discount price.
Already, the company’s brokerage firm, Meristem Stockbrokers Limited, has submitted an application to the exchange for approval and listing of the shares to be sold through the process.
According to a notice obtained by Business Post, the rights issue is on the basis of 17 new shares for every 22 shares held by investors at the close of business on Tuesday, November 9, 2021.
The commencement date for the offering has not been fixed yet because of the pending regulatory approvals, but FTN Cocoa is considering giving shareholders a total of 1.7 billion units.
“Trading license holders are hereby notified that FTN Cocoa Processors Plc has through its stockbroker, Meristem Stockbrokers Limited, submitted an application to Nigerian Exchange Limited for the approval and listing of a rights issue of 1,700,000,000 ordinary shares of 50 kobo each at 50 kobo per share, on the basis of 17 new ordinary shares for every 22 ordinary shares held.
“The qualification date for the rights issue is Tuesday, November 09, 2021,” the disclosure from the exchange issued yesterday stated.
At the stock market on Tuesday, shares of FTN Cocoa appreciated by 10.00 per cent or 4 kobo to settle at 44 kobo, with 533,264 units worth N234,091 transacted during the session by investors. It was the first rise in the price of the stock in almost a week.
