In response to the Rights issues, which are invitations for existing shareholders to purchase additional new shares in the company, the NGX Group (Nigerian Exchange Group) has shown its plans to raise about N10bn as additional capital.
They made this notice clear in the Annual General Meeting that was held on the 7th of April. The group is responsible for all premier exchanges in Nigeria. The group said the proposal was dependent on their shareholders and regulatory approval.
The shareholders are required to raise a capital of about N10bn by means of Right issues, by issuing ordinary shares. As part of the list of businesses to be transacted at its AGM meeting later this month. it will be made on such terms and conditions that are deemed fit or determined by the directors.
It states that;
That the Company be and is hereby authorised to increase its share capital from N1,102,309,954 to N1,347,309,954 (or to otherwise increase its share capital to an amount sufficient to accommodate the Rights Issue.). As in the event of an under-subscription of shares at the Rights Issue, the shareholders have hereby ordered the Directors to release all unsubscribed shares not less than the speculated price issued in the Rights Issue Circular in the manner that is beneficial to the company.”
The shareholders are also expected to vote and consider the amendment of Clause 6 of the Company’s Memorandum of Association be repaired to show the new share capital of N1,347,309,954 by adding 490,000,000 ordinary shares of about N0.50 totally bringing the company’s total share capital to N1,347,309,954 summing up to 2,694,619,907 given ordinary shares of N0.50 each.
In its audited results for 2023, NGX Group announced a profit after tax of N5.2bn and proposed a final dividend of N1.5bn.
The NGX group has experienced a spring in gross earnings, rising about 57.4 per cent to N11.8bn in 2023 from N7.5bn in 2022.
This NGX growth has shown connection to the performances in key revenue and other income segments. In the process of listing fees and other rental income increased by 42.2 per cent and 41.8 per cent. Other investments also contributed to a 5.4 per cent increase in the Treasury income.
Speaking for the group The chief executive officer of the NGX group , Temi Popoola commented on the 2023 result. He spoke on the satisfaction with the company’s operational performance, expressively relating how he feels about how the organisation has grown and can do more.
“I’m pleased with the significant improvement in NGX Group’s operational performance. We have witnessed notable increases in transaction and listing fees, as well as in rental and treasury investment income.” He said.
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