VFD Group raises N2.7bn in rights issue, private placement
VFD Group says it has successfully completed its capital-raising exercise, with N2.78bn derived from rights issue and private placement.
The company, in a statement on Thursday, said the amount raised was a 39 per cent increase from its original target of N2bn.
It said the exercise was successfully completed in December 2018.
According to the statement, the company planned to raise N1bn from existing shareholders via rights issue and the other N1bn via private placement from new shareholders.
It said the offer opened on December 3, 2018, with Kairos Capital Limited acting as the financial adviser, and closed on December 31, 2018.
The statement read in part, “Despite the short timelines, the capital raise was successful, as it was oversubscribed by 39 per cent on both counts.
“This oversubscription is indicative of the confidence existing and new shareholders have in VFD Group.”
The company said the new funding would enable it to pursue the goals mapped out for the 2019 financial year as agreed by the shareholders at the last Annual General Meeting.
It noted that one of the goals was to establish a presence in every key sector of the financial services industry, including banking.
The company said the rights issue and private placement came on the heels of its plans to convert to a public limited liability company.
“The considerations of the offer will be presented at the next meeting of group’s board of directors,” the statement said.