VFD Group Plc has clarified that the recent markdown in shares is a technical adjustment due to the dilution effect caused by the 5-for-1 bonus share offer and the 2025 dividend declaration.

The company, in an official statement, confirmed to shareholders and investors that the bonus sees every shareholder receiving five additional shares for each one held as of the qualification date, bringing their new total holding to six shares.

According to the company, the adjustment does not alter the total value of a shareholder’s investment. The company further confirmed that April 22 served as the official qualification date for shareholders to benefit from the bonus offer and dividend payout.

The company said the shares closed at N96 per share by Nigerian Exchange (NGX) listing regulations, adding that the share price was adjusted downward to N15.6 per share to reflect the increased number of shares resulting from the bonus issuance.

The group emphasised that investors now hold more shares without experiencing any reduction in the value of their stake in the company. The group further reiterated its commitment to long-term value creation and consistent returns, assuring stakeholders of its strategic focus on sustainable growth. It stated that the bonus shares are expected to be credited to eligible shareholders on or before June 14, 2025.

The group added that this timeline is subject to approval by shareholders at the company’s yearly general meeting in May, as well as final clearance from the Securities and Exchange Commission (SEC).

“The bonus share issuance and dividend payment reflect VFD Group’s strong financial performance and long-term growth strategy. Highlights from the 2024 financial year include record-breaking revenue and profit growth across our business lines, strategic expansion across financial services, real estate, technology and consumer markets and consistent delivery of shareholder value through dividends and equity growth.

“We are proud of the journey so far and even more excited about the future, and we thank all shareholders for their continued support and confidence in the VFD vision,” the group stated.