VFD Group to Refund N1.83 Billion in Surplus Rights Issue Payments

VFD Group Plc has announced plans to refund approximately N1.83 billion in surplus funds to shareholders who participated in its recently concluded N50.6 billion rights issue.

The surplus arose from excess payments made by eleven shareholders during the subscription process, the company disclosed in its allotment document.

The document also confirmed that VFD Group 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.

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

• 962 existing shareholders fully took up their provisional allotments, totaling about 1.9 billion shares.
• 94 shareholders with provisional allotments of 705.39 million shares traded 122.86 million units on the floor of the Nigerian Exchange (NGX) Limited, which were acquired by 138 new investors.
• Another 94 shareholders partially exercised their rights, accepting 356.25 million shares and renouncing 226.27 million shares.
• Additionally, 5,334 shareholders fully renounced their rights, representing about 2.46 billion shares, which were absorbed by investors seeking to increase their holdings.

These excess payments led to the N1.83 billion surplus, which the company has committed to refund.

The company noted that additional demand from investors helped absorb all renounced shares during the offer period. 571 shareholders who fully exercised their rights also applied for extra shares totaling 2.69 billion units, fully taking up the shares renounced by others.

The document confirmed that all valid applications received 100% allotment, indicating a strong alignment between investor demand and the offer size.

With SEC approval now secured for the basis of allotment, VFD Group has successfully completed the capital-raising process for its N50.6 billion rights issue.