C&I Leasing Plc has obtained approval of the Securities Exchange Commission (“SEC) to open subscription of a rights issue.
The Details: The rights issue is of Five Hundred and Thirty-Nine Million, Three Thousand, Three Hundred and Thirty Three (539,003,333) ordinary shares of Fifty Kobo (N0.50) each at Six Naira (N6.00) per share, on the basis of four (4) new ordinary shares for every three (3) ordinary shares held.
Based on the approval obtained from SEC, the offer opened on Monday, 18th of November 2019 and is expected to close on Friday 27th of December 2019.
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The leasing firm noted that the rights issue e-Circular was being distributed to shareholders. It also admonished the shareholders to access the rights issue e-Circular on the website of the company’s Registrars, Centurion Registrars at (http://centurionregistrars.com/).
The firm also added that shareholders should contact their stockbrokers and other financial advisers for more details regarding the offer.
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What this means: It is of common knowledge that a rights issue is a way for companies to raise capital. In this regard, capital is raised when existing shareholders pay for the new shares that are being issued.
Companies may use the raised capital to acquire assets, make a take-over, repay debts or save itself from bankruptcy. Although a company can raise capital in other ways, such as borrowing from banks or issuing bonds, there can be times when the companies may be reluctant to seek credits from banks because of the high-interest rate incurred by loans.
Gross earnings: In the first three quarters of 2019, the firm recorded N26.55 billion in gross earnings, compared to N19.86 billion recorded as at the third quarter of 2018, representing an increase of 33.67%.
Profit Before Tax: Profit before tax for the logistics firm stood at N1.20 billion as at the third quarter of 2019, compared to N1.28 billion recorded at the end of the third quarter of 2018, representing a decline of 6.67%.
Profit After Tax: The firm recorded a profit of N1.12 billion for the nine-month period of 2019, compared to N1.24 billion recorded at the end of the nine months period for 2018. This represents a 9.94% decline in profit.
Earnings Per Share: C&I Leasing recorded N277.20 as earnings per share as at the end of the third quarter of 2019 compared to N76.95 as at the end of the third quarter of 2018.
About C&I Leasing Group Plc: C&I Leasing Group Plc is a Nigerian public limited maritime company. It was formed in 1990 as a private company and converted into a public company listed on the Nigerian Stock Exchange in 1997. The business provides technology-based, end-to-end tracking and other logistics and fleet management solutions for vehicles and various marine vessels. The service conglomerate is managed along three business lines.