Riding on the back of the increased investor confidence in Nigeria’s equity market which has seen the benchmark indicators of the Nigerian Stock Exchange (NSE) achieving returns on investment of over 42% recently, more companies have continued to file applications for rights issues with the Securities & Exchange Commission (SEC) and the Nigerian Stock Exchange (NSE), joining the domestic arms of British manufacturers- Unilever and Guinness.
On Friday, healthcare and agribiz firm, Morison Industries announced plans to approach its existing shareholders for fresh capital injection into the business of about N502.189m, just as directors of Transnationwide Express reminded shareholders that its ongoing offer, also by way of rights, of 298.23m shares to raise N238.58m closes next Thursday, August 30, 2017, having opened on July 24.
Morison Industries is seeking the fresh capital from the sale of 836,983,125 ordinary shares of 50 kobo each by way of rights at 60 kobo per share on the basis of 11 new ordinary shares for every two held.
Qualification date, according to a statement by stockbrokers by Godstime Iwenekhai, Acting Head, Listings Regulation Department of the NSE, is Friday, August 25, 2017.
Although the purpose of the offer may not be unconnected with the need to reinvest in the business and reposition the company and bring it back to the path of profit, at a time it suffered a net loss of N60.6m for 2017 half-year ended June 30, up from the previous half-year’s N21.2m loss.
The rights issue of Tranex, according to a statement by Chidinma Iheme, its managing director and chief executive, is being undertaken to raise capital for business expansion and to help “set the company on a growth trajectory in the logistics sector.”
The offer, which will further enhance profitability and shareholders’ value, she continued, is on the basis of three new ordinary shares for every two held as at the close of business on January 25, 2017.
She therefore urged the shareholders to take advantage of the offer to increase their holdings in the company.
Unilever Nigeria is eyeing N58.85bn rights issue through an offer of 1.961bn ordinary shares of 50 kobo each at N30 each, which opened on Monday, July 31, 2017 in the ratio of 14 new shares for every 29 shares held by existing shareholders as at June 28, 2017. Interested shareholders were expected to pick or trade their rights on, or before August 17.