VFD Group Shrinks by 10% after Rights Issue

VFD Group Shrinks by 10% after Rights Issue

VFD Group Plc lost 10% of its market value on the Nigerian Exchange (NGX) on Monday, following the regulator’s approval of its recent rights issue. 

Trading data from the local bourse showed that the investment company’s share price declined to N11.25, as 5.727 million units of the company’s shares outstanding, valued at N69.231 million, were exchanged in an open transaction.

This widened VFD price movement, with the stock trading about 41% below its 52-week high. VFD Group dropped while financial stocks recorded significant positioning.

Trading data over the last 7 days indicates that VFD traded between N11 and 12.5, reflecting limited upside amid a booming local bourse.

At the close of the trading session on Monday, the market value of VFD Group Plc, with 7.601 billion outstanding shares, declined to N85.512 billion, 41% below its 12-month high.

The Securities and Exchange Commission (SEC) has approved the Rights Issue of 5,067,396,400 ordinary shares of VFD Group Plc, valued at N50.07 billion or N10.00 per share.

The Rights Issue, which was subscribed by existing and new shareholders, achieved 100 per cent subscription, mainly from existing shareholders, who made up 88 per cent of the investors.

Following this regulatory approval, the shares would be credited to shareholders’ depository accounts with the Central Securities Clearing System PLC and would subsequently be available for trading in the secondary market on the main board of the Nigerian Exchange.

VFD Group Plc has recently raised N27.2 billion through its Series 1 Commercial Paper (CP) Issuance under its N50 billion Commercial Paper Programme, following strong investor demand that resulted in a 100% oversubscription of the initial offer.

The Series 1 issuance was originally launched with a target raise of up to N15 billion.

However, driven by robust participation from institutional and eligible investors, the offer was oversubscribed by approximately N15 billion, prompting the company to upsize the issuance to N27.2 billion.

The CP was issued across two tenors, 270 days and 364 days, attracting a broad base of qualified institutional investors and high-net-worth participants within Nigeria’s domestic debt market.

The significant oversubscription underscores sustained investor confidence in VFD Group’s diversified business model, disciplined capital management framework, and long-term growth trajectory. Zenith Bank Hits 52-Week High, Market Cap Now N4.2trn