By Adedapo Adesanya
Innovative gas solutions and technologies company, Air Liquide Nigeria Plc, has disclosed the real reasons behind its proposed rights issue of 414,000,000 ordinary shares of 50 Kobo per N5 share.
According to the company, which trades its securities on the Over-the-Counter (OTC) of the NASD Securities Exchange, the exercise was considered mainly to enable the organisation pay down its debt obligation, finance capital expenditures, and also to fulfil its working capital requirements.
Business Post had reported in October that the firm intended to raise the sum of N2.07 billion from its existing shareholders, but the major reason for this rights issue was never publicized.
Last week in Lagos, executives of the company held a crucial meeting with investors, where they were informed the motive behind the proposed exercise and why they should partake in it.
Air Liquide, through its stockbroker, Stanbic IBTC Stockbrokers Limited, had filed an application for the sale of a total of 414,000,000 units of 50 Kobo each of its shares at N5 per unit on the basis of 23 new ordinary shares for every 10 ordinary shares held.
Following the approval for the rights issue, the opening date was set for Monday, November 4, 2019 and is expected to run till Friday, November 29, 2019 with the offer for payment set in full, on acceptance.
Air Liquide would be the pioneering company taking this route on the platform following the NASD directive to companies listed on its platform to seek ways to raise fresh capital for their operations through rights issue.
As at the time of this report on Tuesday, shares of Air Liquide Nigeria Plc were trading at N6.00 per unit with a market capitalization of N1.08 billion and total shares of 180 million quoted on the NASD plarform.
Air Liquide started its business in Nigeria over 50 years ago and has its range of activities which includes industrial and medical gases, welding, hygiene supplies to the oil and gas, mining, automotive and fabrication, food and pharma markets, and also healthcare.
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