The board of Lafarge Africa Plc, at the weekend published the result of its rights issue through which it sought N89.212bn, which opened on December 4, 2018, reporting 100% subscription from existing shareholders.
The rights issue, which was to further strengthen its balance sheet by restructuring of its outstanding short term $315m shareholder loans, Mobolaji Balogun, its Chairman had told shareholders will also “provide head room for the expansion of our business.”
Specifically, Lafarge Africa offered 7.434bn ordinary shares to its shareholders on the basis of six ordinary shares for every seven held as at December 4, 2018 at N12 each, as per rights circular dated December 10, 2018.
While a total of 1,826 applications were received for 7.434bn were received and found valid, 1,734 shareholders accepted their rights in full, totaling 5.931bn units, of which 738,731,071 ordinary shares were traded on the floor of the Nigerian Stock Exchange (NSE); another 92 shareholders partially accepted their rights, renouncing 193.473m shares.
Another 1,106,990,739 ordinary shares were full renounced, bringing total renounced units to 1,300,463,805 units
A total of 738.731m units from the partially renounced shares were purchased on the NSE from the rights by 34 subscribers; just as 734 shareholders among those who took their rights in full, applied for additional 1,300,463,805 ordinary shares and were allotted in full from the renounced rights.
According to Lafarge Africa, “surplus monies due to subscribers will be returned within five working days of approval of allotment of securities in accordance with the rules and regulations of the (Securities & Exchange) Commission.”
The impact of the rights issue would become clear at the end of current financial year, whose result is expected in one year.
While ChapelHill Denham Advisory Limited was lead issuing house, Stanbic IBTC Capital served as joint issuing house to the offer.