C&I Leasing Plc has received the approval of the Securities and Exchange Commission (SEC) to conduct the signing ceremony with regards to the proposed rights issue to raise about N3.2 billion.
The company plans to make a right issue of 539,003,333 ordinary shares of N0.50 each at N6.00 per share, on the basis of four new ordinary shares for every three ordinary shares held.
In a notification to the Nigerian Stock Exchange (NSE) yesterday, C & I Leasing Plc said subject to the approval of the executed offer documents by the SEC, the application list was expected to open on the 11thof November 2019 or any other date approved by the commission and shall open for a maximum period of 28 days.
“ Rights circular will be distributed to shareholders while application forms would also be made available on the website of the company’s Registrars for ease of access. Esteemed shareholders are advised to contact their stockbrokers and other financial advisers for more details on the offer,” it said.
The Managing Director/CEO of the company, Mr. Andrew Otike-Odibi had last Juy at the 28th annual general meeting (AGM) of company given indication to the capital raising exercise.
“The business is at a point where we need equity injection and management is working with financial advisers to look at different options that we can use to raise equity. One, it might be a rights issue. So we might be calling on you very soon to support the business by taking up your rights and getting capital into the business to help the business grow to new heights,” Otike-Odibi told the shareholders.
The company had ended 2018 financial year with a profit after tax (PAT) of N438 million and paid a dividend of N104.3 million.