VFD Group Plc has signed an agreement with Lead Issuing House, Norrenberger Limited, to commence its N50.67 billion rights issue aimed at strengthening its capital base, reducing debt and expanding its investment footprint across Africa and the United Kingdom.
Speaking at the signing ceremony held yesterday in Lagos, Chairman of VFD Group, Olatunde Busari (SAN), described the rights Issue as a major milestone in the company’s growth trajectory, noting that it signals shareholders’ confidence in the group’s long-term vision and strategic direction.
The rights issue, approved by shareholders at the company’s 9th Annual General Meeting on May 8, 2025, comprises 5,067,396,400 ordinary shares of 50 kobo each, offered at N10 per share based on two new shares for every three existing shares held. The offer is expected to yield about N49.55 billion net of costs.
According to Busari, proceeds from the offer will be used to deleverage the company’s balance sheet, support geographical expansion into Southern Africa and the United Kingdom, and deepen investments in key subsidiaries.
He said the initiative will also enhance liquidity, improve leverage ratios, and position VFD Group to seize new opportunities across critical sectors of the economy.
“This capital raise reflects our continued commitment to building a stronger, more resilient, and diversified investment group. As we sign these documents today, we are not merely executing a transaction. We are reinforcing our collective belief in VFD’s future. Together, we will continue to build a pan-African investment group that stands for excellence, integrity, and sustainable prosperity,” Busari said.
In a brief interview after the signing, the chairman explained that the decision to embark on the N50 billion capital raise was driven by the company’s determination to consolidate on previous gains and expand beyond Nigeria’s borders.
He recalled that the firm’s N12.5 billion rights issue in 2024 was fully subscribed, enabling VFD to declare both cash dividends and bonus shares within the same financial year, a rare achievement in the Nigerian market.
Busari expressed confidence that the new rights issue would be equally successful, citing the Group’s solid track record and the strength of its board and management.
“We have done it before, and we are confident that this exercise will position us even better. With this programme, we are delivering the balance sheet, expanding our investment portfolio within and outside Nigeria, and creating sustainable value for our shareholders,” he stated.
Also speaking at the event, the Group Managing Director of VFD Group, Nonso Okpala, highlighted the company’s focus on deepening investments across four key sectors, which include market infrastructure, capital markets, financial services, and real estate.
He noted that VFD plays a leading role in the ownership of key market exchanges and has interests spanning investment banking, asset management, fintech, digital banking, and hospitality.
Okpala disclosed that through its subsidiaries, VFD is building an ecosystem that integrates opportunities across Africa, with an eye on innovation and value creation.
He said, “We are at a critical milestone to support our growth trajectory. Our strategy is simple: we make investments, deepen the verticals we are in, and replicate success in other sectors and geographies. The future belongs to companies that can act within ecosystems, protect them, cross-sell and enhance performance and we are at the forefront of building that system.”
He added that the N50 billion capital raise would enhance the company’s capacity to unlock profitability, replace debt with equity, and sustain its aggressive investment drive across emerging sectors.
