NGX Lists 1.611bn Units Of Capital Hotels, As Firm Acquires 51% Stake For N11.3bn

  • As Free Float Shrinks To 9.61%The Nigerian Exchange Limited, on Friday, listed a total of 1,611,995,510 additional ordinary shares of 50 Kobo to those outstanding in the name of Capital Hotels Plc, owners of Sheraton Abuja Hotel, following w successful private placement offered through Private Placement to 22 Hospitality Limited at N7.00, amounting to N11.3bn.Recall that on April 26, 2022, the company reported that following the rejection of resolution put before the extraordinary general meeting held in Abuja the previous day on “the urgent need to raise capital for the renovation of the hotel, 1,611,995,510 Ordinary Shares of 50k each be and are hereby offered by way of Rights Issue to the Existing Shareholders at the price of N7 per share in accordance with section 142 of the Companies and e Allied Matters Act 2020.”

    This, the directors explained in the notice by Robert Itawa and Alex Ugwuanyi, Director and Secretary respectively, amounting to a waiver of rights by shareholders as provided for in Section 142 of the Companies and Allied Matters Act 2020, following which they offered the shares by way of Private Placement to 22 Hospitality Limited at the price of N7.00 per share subject to regulatory approval.

    In a notice to trading license holders, the NGX said the additional shares have been listed on its Daily Official List, increasing the total issued and fully paid up shares of Capital Hotels Plc from 1,548,780,000 to 3,160,775,510 ordinary shares of 50 kobo each.

    Following the conclusion of the successful private placement, the stake held by 22 Hospitality Limited now represent 50.99% of the new total shareholding in Capital Hotels Plc.

    Arising from the foregoing, an analysis of the new shareholding structure by Investdata Research shows that the 789,877,800 units of Hans-Gremlin Nigeria Limited drops from the previous 51% to 24.99%; while the 228,564,655 shares or 14.7577% previously held by Continental Energy Resource, is now 7.23%.

    Also, Oma Investment Limited’s 226,107,523 shares or 14.5991%, now represents 7.15%; just as the 100,775,620 units held by Abuja Investment Company Limited, drops from 6.50%, to 3.188%.

    Consequently, the total shareholding of investors with 5% stake and above now stands at 90.36%, resulting in a drop in free float as a percentage of total shares of 9.64%, down from the previous 13.14%.