VFD Group Rights Issue Gets SEC’s Approval

Kayode Tokede

The Securities and Exchange Commission (SEC) has approved the rights issue of 5,067,396,400 ordinary shares of VFD Group Plc, valued at N50.07 billion or N10.00 per share. 

The rights issue, which was subscribed by existing and new shareholders achieved 100 per cent subscription, majorly by existing shareholders, who made up 88per cent of the investors in the rights issue. 

Following this regulatory approval, the shares would be credited to the depository accounts of shareholders with the Central Securities Clearing System Plc (CSCS), and would subsequently be available for trading in the secondary market on the main board of the Nigerian Exchange. 

The new shares rank equally with all existing shares of the Group and will increase the capitalization of VFD Group Plc on the Nigerian Exchange. 

Following the successful closure of this N50.1 billion rights issue, VFD Group is poised to harness the potentials of its ecosystem, with renewed capacity to upscale existing business verticals whilst incubating new growth stars. 

The Group has distinguished itself as a multi-sector investment holding company, affording investors exposure to the key growth sectors of the Nigerian economy. 

VFD provides a low-entry point for investors seeking exposure to a diversified growth-oriented platform. With its portfolio of fast growing and leading businesses across the multiple sectors, VFD Group affords true diversification. 

On the back of the news of regulatory approval to the successful rights issue, the shares price for two consecutive days, closing at N12.50 per share Friday, March 13, 2026, translating to a 25 per cent gain for shareholders who bought the rights issue shares at N10.00 per share. 

Speaking on the approval of the rights issue, the Group Chief Executive Officer, Mr. Nonso Okpala, noted: “We are thrilled by the success of our rights issue, and we appreciate the confidence of our esteemed shareholders in our ability to execute on our next growth strategies aimed at positioning VFD Group as a leading investment holding company in Africa. 

“Our mission is to fill the immense vacuum across many sectors of the economy and in doing so, we create unparalleled value for our shareholders. 

“We thank the Securities and Exchange Commission and our transaction advisers for the diligence through the overall process. The proceeds of the rights issue afford us the opportunity to upscale our flagship businesses, recapitalized all capital market-related entities in line with new regulatory requirements and accelerate our business incubation programme. 

“With a few potential unicorns in our portfolio, we are building an incredible ecosystem that would deliver sustainable and superior value to our shareholders in the short and long term.”

The Executive Director, Finance, Mr. Folajimi, said: “The success of the offer is a testament of investor confidence in the Group’s leadership and we do not take it for granted. More than ever, we are committed to our vision and values of disciplined investment and effective risk management. This increased capitalization would support our effort to scale and drive efficiency across our ecosystem and of course enhance our returns on equity, as we seek to sustainably deliver superior value to our distinguished shareholders.”