McNichols Commences N265.6m Rights Issue
By Dipo Olowookere
The N265.6 million rights issue of a local fast-moving consumer goods company, McNichols Consolidated Plc, has commenced. The exercise officially kicked off on Wednesday, August 9, 2023, and is expected to close on Thursday, August 31, 2023.
Business Post reports that the company intends to sell about 531,242,609 ordinary shares to shareholders for 50 Kobo per unit on the basis of 17 ordinary shares for every 23 ordinary shares held as of September 16, 2022.
Details of the sale obtained by this newspaper showed that the organisation would use proceeds from the rights issue to purchase a new cube sugar plant, distribution vehicles, packaging equipment to meet the growing needs of customers, improve working capital to increase its sales and profitability, and they for expansion of its operation location and depots.
McNichols produces food and beverage products like custard, sugar, chocolate-flavoured milk, tea, and various milk-based products, which are distributed through a network of reputable distributors across Nigeria.
A few of its popular products on many shelves across the country include Family Cane Sugar, Family Sugar, Family 3-in-1 Milk Custard, Pancake Mix, and Newlife Bitter Leaf Capsules, among others.
The firm said it was approaching the capital for funds to facilitate the expansion of its production capacity to effectively address the demands of its markets while enhancing its distribution channels.