In a notice sent to the Nigerian Stock Exchange (NSE) yesterday, C and I Leasing Plc disclosed its intentions to reconstruct its issued and paid up share capital.
According to the notice,
“The Company has made an application to The Nigerian Stock Exchange (“The Exchange”) and obtained a “No Objection” to its proposal to reduce the Company’s issued and paid-up share capital from N808,505,000 being 1,617,010,000 ordinary shares of 50 kobo each to N202,126,250 being 404,252,500 ordinary shares of 50 kobo each by consolidating every four(4) ordinary shares currently held into one(1) new share in the company. The share capital so reduced will be added the company’s share premium account.”
Benefits of the proposed move
The firm also stated in the notice, that the proposed reconstruction would allow the company to have enough unissued shares to accommodate future plans to raise capital through the equity capital market. The additional capital will be used to finance the company’s expansion plan, extinguish some liabilities and enhance the company’s capital mix.
The qualification date for the share consolidation shall be Wednesday 12th December 2018 and the shares of the company will be placed on suspension from Thursday 13th December 2018 to Thursday 27th December 2018 to allow for the consolidation exercise.
C and I Leasing is currently trading at N2.09 in today’s trading session, up 7.73% from the prior day.
Results for the half year ended June 2018, shows gross earnings increased from N11.5 billion in 2017 to N12.7 billion in 2018. Profit before tax increased from N614 million in 2017 to N723 million in 2018. Profit after tax also increased from N580 million in 2017 to N682 million in 2018.