United Capital Gains 43% after Bonus, Interim Dividend Notice
United Capital Plc’s market valuation hit N243 billion on the Nigerian Exchange (NGX) as strong bargain hunting lifted its share price by 48.2%. Its market value surged strongly after the company’s earnings beat propelled its board of directors to declare bonus and interim dividends.
In the first half of 2024, United Capital recorded more than 65% earnings per share growth, up from N1.56 to N2.58 – part of which the board wants to distribute to shareholders.
Its core shareholder, West Coast Equity Limited, maintained a 26% stake in the company as of the end of the first half of 2024. Other influential shareholders have a 12.32% combined interest in UCAP Plc.
United Capital Plc declared it has a free float percentage of 60.69% as of 30 June 2024, which is compliant with The Exchange’s free float requirements for companies listed on the Main Board
Investors trading highs and lows who saw potential upside after the company made the information public quickly ramped up shares in the local bourse ahead of the close of members register in July.
In what appears to be a move to boost its employees’ morale, the market also experienced surging demand from those employees connected to United Capital Plc’s operations. The demand followed the end of the closure period that barred insiders from trading in the company’s shares.
According to data from the Nigerian Exchange, United Capital Plc’s 6 billion shares outstanding were priced high by 42.8% from N28.40 to N243.300 billion at N40.55 per share as of Friday’s close.
In its insider dealing notice submitted to the Exchange, United Capital announced share buying activities from its employees, details from its regulatory filing reviewed by MarketForces Africa showed.
The company issued seven notices from dealings by the insiders, those that are connected to its operation, acquiring 180,125 shares from the local bourse just after the board announced a plan to pay bonuses, and interim dividends.
“A dividend of N0.90 per 50 kobo ordinary share, subject to appropriate withholding tax and approval will be paid to shareholders whose names appear in the Register of Members as at the close of business on July 31, 2024”, the company told the Nigerian Exchange in a regulatory filing.
UCAP plans to pay dividends electronically to shareholders whose names appear on the Register of Members as of July 31, 2024, and who have completed the e-dividend registration and mandated the Registrar to pay their dividends directly into their Bank accounts
In the first half of 2024, United Capital PLC’s profit surged by 65% year on year to N7.736 billion from N4.689 billion in the comparable period in 2023. The company’s bottom line came stronger following 38% year-on-year growth in gross earnings. Details from the company’s results showed that gross earnings rose to N15.147 billion at the end of the first half of 2024 from N11.014 billion 12 months earlier.
The company’s investment income, fee, and income, as well as net trading income year-on-year growth, boosted the top-line performance in the period.
In the last 12 months, United Capital Plc’s total assets climbed more than 27% to N1.185 trillion from N931.948 billion at the end of first half in 2023. #United Capital Gains 43% after Bonus, Interim Dividend Notice Nigeria, Angola Inflation Highest in Frontier Markets -Report
