NGX Group to raise N35bn fresh capital for business expansion

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BY BAMIDELE FAMOOFO

Uba Group

The Nigerian Exchange Group has disclosed its intention to raise additional capital of N35 billion to fund its business expansion, growth phase for existing business expansion and fund investments in identified and carefully curated new targets, in line with the group’s strategy.

Part of the capital raise however will be in dollar denomination as captured in the notice of its Annual General Meeting issued to its shareholders and the investing public.

It noted that part of the approval granted by the shareholders at the 2021 AGM was for half of the total number of shares proposed for the LTIP being 100,209,995 ordinary shares of 50 kobo each to be purchased by employees under an Employee Share Purchase Plan. Under the terms of the ESPP, the shares will be offered at a discount of between 15 – 20 percent of its market price and will be purchased by employees subject to the fixed cap per employee and availability of the pool.

The Group said it has also identified viable investment opportunities in line with its strategic expansion plans, including deepening investments in the existing portfolio companies to ensure high and steady dividend returns while adding that it is on course with its long-term strategy which will ensure it provides competitive returns for its investors.

Meanwhile, NGX Group assures the investing public that it will continue to uphold the highest corporate governance standards.

“We are extremely mindful of due process, our records are verifiable, and we are on course with our long-term strategy execution,” it said in a statement.

It further noted that it remains on course with its long-term strategy to provide competitive returns for its investors.

The Group clarified that the appointments of some of its directors which were approved by the National Council and the Securities and Exchange Commission does not contravene any law or governance codes.

It also added that the directors were empowered to establish the Scheme further to a resolution of the shareholders at the NSE’s Extra-Ordinary Meeting held on 3 March 2020.

Additionally, the resolution for the allotment of 200,419,990 ordinary shares of 50 kobo each for the operation of a Long-Term Incentive Plan consisting of a Deferred Bonus Plan (DBP) and an Employee Share Purchase Plan, was made at the Company’s 2021 AGM on 9 September 2021, for the purpose of operationalising the earlier approval of the establishment of an Employee Stock Ownership Plan in 2020.