VFD Group Plc has announced the launch of a N50.7 billion rights issue aimed at strengthening its capital base and accelerating its strategic growth agenda across Africa and beyond.
The announcement was made during a formal signing ceremony held on Wednesday, marking a significant milestone in the company’s expansion journey.
Speaking at the event, Group Managing Director and CEO Nonso Okpala emphasized that the capital raise is driven by performance, not necessity.
“Our 1,202% profit before tax turnaround is the definitive proof of concept for our proprietary model,” Okpala said. “It demonstrates our capacity to turn market dislocations into arbitrage opportunities. We are presenting a quantifiable reality, not a theory.”
He described the rights issue as a strategic capital acceleration for VFD’s global expansion plan, which is already active in Ghana and making inroads into Southern Africa. “This capital ensures VFD can strategically move from an established presence to significant market stake acquisition. The unified African economy represents a major growth wave, and this capital ensures VFD acquires a significant stake in that growth,” Okpala added.
Shareholder Confidence and Strategic Deployment
Chairman of VFD Group, Olatunde Busari (SAN), acknowledged the support of shareholders, regulators, and advisers.
“Today marks a significant milestone in the journey of VFD Group Plc. We are gathered here to formally sign and commemorate the launch of our N50.67 billion Rights Issue, a pivotal step in strengthening our capital base and advancing our strategic growth agenda,” he said.
Busari recalled that at the company’s 8th Annual General Meeting, shareholders approved a capital raise of up to N30 billion, of which N12.5 billion was successfully raised. Building on that momentum, the 9th AGM held on May 8, 2025, authorized the Board to raise an additional N50 billion through various instruments.
Following consultations with advisers, the Board approved the rights issue comprising 5,067,396,400 ordinary shares of 50 kobo each, offered at N10 per share on the basis of two new shares for every three existing shares held.
The net proceeds, estimated at N49.55 billion, will be used to deleverage the company’s balance sheet, fund geographical expansion into the United Kingdom and Southern Africa, and increase investments in key subsidiaries.
Building a Resilient Pan-African Investment Group
VFD Group’s asset base has now exceeded N356 billion, underscoring its financial strength and operational momentum. The capital raise is expected to enhance liquidity, improve leverage ratios, and position the company to capture emerging opportunities across multiple sectors and regions.
“As we sign these documents today, we are not merely executing a transaction—we are reinforcing our collective belief in VFD’s future,” Busari said. “This Rights Issue marks the beginning of a new phase of growth, innovation, and value creation for our stakeholders.”
He concluded by reaffirming the company’s commitment to building a pan-African investment group rooted in excellence, integrity, and sustainable prosperity.
What You Should Know
- The rights issue is coming barely two weeks after Abbey Mortgage Bank announced that VFD Group, its largest shareholder, sold 400,828,935 units of the bank’s shares worth over N2.72 billion.
- The transaction was disclosed in a filing on the Nigerian Exchange (NGX), signed by the company’s secretary, Geoff Amaghereonu, and executed in Lagos.
- According to the notice, the shares were sold on September 17, 2025, at an average price of N6.80 per share under the identification code NGABBEY00001.
