FMDQ shareholders approve N5bn capital raise, name change
SHAREHOLDERS of FMDQ OTC Plc have approved the plan by the Board of Directors to raise N5 billion fresh capital to further boost its operation.
The shareholders also approved a name change from FMDQ OTC Plc to FMDQ Securities Exchange Plc following earlier approval from the regulatory authorities.
Speaking at the sixth annual general meeting, AGM, in Lagos, the Chairman, Dr. Joseph Nnanna, who said that no stipulated date has been fixed for the capital raising, stated that the fund would be raised via a mix of rights issue and public offering.
He explained that the fund would be raised in tranches and will be deployed towards subsidiaries and products development. Presenting the financial report to the shareholders, Nnanna said that the Exchange admitted a total of 50 debt securities worth N236.87 billion, while foreign currency-denominated securities listings amounting to $4.98 billion was also attracted during the year.
According to him, the Exchange recorded N2.57 billion revenue for the year ended December 31, 2017, a 25.94 percent increase compared to N2.04 billion posted in 2016, and the highest recorded since its inception in 2013.
“However due to investments made in strategic market development initiatives during the year, the operating expenses also grew by 39 percent to N2.22 billion, leading to a decline of 20.58 percent in Profit Before Tax, PBT, at N349.76 million compared N440.4 million recorded in 2016.
“Turnover from trading activities on our platform also recorded the highest value since inception at N142.03 trillion, a 25 percent increase when compared to the previous year, with increased trading activities seen in the Treasury Bills and Foreign Exchange product lines,” he said.