VFD Group Plc has launched a N50.67bn rights issue as part of its strategy to consolidate growth and deepen its investment footprint across Africa.
The offer was formally opened on Wednesday during a signing ceremony in Lagos, where parties to the transaction endorsed the deal.
The new rights issue follows VFD Group’s 2023 equity raise, which was fully subscribed and enabled the payment of dividends and bonuses to shareholders in 2024. The company also recorded a 1,202 per cent turnaround in profit before tax, while its asset base surpassed N356bn.
Speaking at the event, the Chairman of VFD Group, Olatunde Busari (SAN), said the company’s previous capital raises were fully subscribed, underscoring investor confidence in its long-term strategy
Our last rights issue was fully subscribed. Those efforts strengthened our financial capacity and enabled us to deliver strong shareholder value through both cash dividends and bonus shares,” he said.
Busari explained that the fresh N50.67bn offer would provide the financial leverage needed to pursue new opportunities across the continent, including ongoing and prospective investments in Ghana, Namibia, and Southern Africa.
“We are an investment company that identifies opportunities and creates value for shareholders. With our proven track record and strong board, we are confident that this new round will drive further expansion and returns,” he added.
Providing more insight, Busari said, “The proceeds of this offer, estimated at N49.55bn net of costs, will be strategically deployed to deleverage the company’s balance sheet, fund our geographical expansion across the United Kingdom and Southern Africa, and increase investments in key subsidiaries.
“This capital raise reflects our continued commitment to building a stronger, more resilient, and diversified investment group. It will enhance liquidity, improve leverage ratios, and position VFD Group to capture emerging opportunities across multiple sectors and regions.”
Group Managing Director of VFD, Nonso Okpala, also expressed optimism about the success of the offer, citing Nigeria’s improving economic climate and supportive government reforms.
“We believe the current policy environment has created a favourable atmosphere for raising capital. The economy is stabilising, sectors such as banking, insurance, and capital markets are being revitalised, and we see tremendous potential for growth,” he said.
He stressed that investment companies like VFD play a crucial role in mobilising capital and driving economic development. “Nigeria needs strong investment firms that can channel funds sustainably and support corporate performance. VFD is well-positioned to lead in that space,” Okpala added.
VFD Group is a proprietary investment company with interests spanning financial services, real estate, technology, and hospitality. It has operations across Sub-Saharan Africa, as well as in the United Kingdom and the United States.
