VFD Group to refund shareholders N1.83 billion surplus subscriptions

2026-03-14 14:50:27

VFD Group Plc will refund about N1.83 billion in surplus funds to shareholders who participated in its recently concluded N50.6 billion rights issue.

The development follows excess payments made by eleven (11) shareholders during the subscription process.

This was disclosed in the allotment document obtained by Nairametrics on Wednesday, March 11, 2026.

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The document also confirmed that the company has secured approval from the Securities and Exchange Commission (SEC) for the allotment of shares under the capital raise.

The rights issue involved 5,067,396,400 ordinary shares of 50 kobo each priced at N10 per share, offered to existing shareholders on the basis of two new shares for every three shares held as of August 8, 2025.

What the data is saying

The allotment document shows that the rights issue attracted 1,194 valid applications for the entire 5.07 billion shares, resulting in a 100% subscription level.

A total of 962 existing shareholders fully took up their provisional allotments amounting to about 1.9 billion shares.
About 94 shareholders with provisional allotments of 705.39 million shares traded 122.86 million units of their rights on the floor of the Nigerian Exchange (NGX) Limited, which were subsequently acquired by 138 new investors.
Another 94 shareholders partially accepted their rights totalling 356.25 million shares while renouncing the remaining 226.27 million shares.

In addition, 5,334 shareholders fully renounced their rights representing about 2.46 billion shares, which were subsequently absorbed by other investors seeking to increase their holdings.

These transactions ultimately resulted in excess payments by some shareholders, leading to the N1.83 billion surplus that the company said will be refunded to the affected investors.

More insights

The company disclosed that additional demand from investors helped absorb all the renounced shares during the offer period.

A total of 571 shareholders who fully exercised their rights also applied for additional shares amounting to 2.69 billion units.
These additional applications effectively took up all the shares that were renounced by other shareholders.
The document confirmed that all valid applications received 100% allotment, indicating that investor demand closely matched the size of the offer.

The group has now received regulatory clearance from the Securities and Exchange Commission (SEC) for the basis of allotment of the N50.6 billion rights issue, completing the capital-raising process.

What you should know

In October 2025, VFD Group launched the rights issue as part of its strategy to strengthen its capital base and support expansion across Africa and other international markets.

The offer comprised about 5.07 billion ordinary shares priced at N10 each.
It was structured on the basis of two new shares for every three shares held by existing shareholders.
Proceeds from the capital raise are expected to be used to reduce leverage and fund investments in key subsidiaries.

The company also raised N27.2 billion through its Series 1 Commercial Paper issuance under its N50 billion Commercial Paper programme after the initial N15 billion offer was fully subscribed.

With regulatory approval secured, the company said the allotted shares will be credited electronically to shareholders’ accounts with the Central Securities Clearing System Plc in collaboration with its registrar, Africa Prudential Plc.

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