C & I Leasing Plc has raised about N2.26 billion from its existing shareholders, 30 per cent or N970 million short of the leasing company’s target of N3.23 billion.
C & I Leasing had sought to raise N3.23 billion from existing shareholders through a rights issue of 539 million ordinary shares of 50 kobo each at N6 per share.
The rights were pre-allotted on the basis of four new ordinary shares of 50 kobo each for every three ordinary shares of 50 kobo each held as at the close of business on Wednesday, September 04, 2019.
Regulatory documents showed that the offer recorded 70.02 per cent subscription as shareholders picked up 377.39 million ordinary shares of 50 kobo each.
The additional shares from the rights issue have been listed on the Nigerian Stock Exchange (NSE), increasing C & I Leasing’s outstanding shares at the stock market from 404.25 million ordinary shares of 50 kobo each to 781.65 million ordinary shares of 50 kobo each.
The company would use the net proceeds of the offer to bolster its working capital and increase leasing assets.
AbraaJ Investment Management Limited (AIML), which had secured approval to convert its $10 million loan in C & I Leasing to equities in the Nigerian leasing company, and thus became a majority shareholder, had indicated that it would not be picking its rights.
C & I Leasing had in January 2019 concluded a massive share reconstruction that saw cancellation of 1.479 billion ordinary shares of 50 kobo each, about 79 per cent of the company’s pre-consolidation issued share capital.
The share capital reconstruction had reduced the leasing company’s outstanding shares from 1.883 billion ordinary shares of 50 kobo each to 404.25 million ordinary shares of 50 Kobo each.
Under the share consolidation, four ordinary shares of 50 kobo each were consolidated into one ordinary share of 50 kobo each.
The company had stated that the purpose of the reconstruction was to allow the company to have enough unissued shares to accommodate the conversion of the Abraaj loan stock to ordinary shares and to raise additional capital through the capital market for business expansion.
The offer period coincided with the discovery of a financial error in the financial statement of the group’s Ghana subsidiary.
The board of the company however stated that it did not envisage that the financial error would have any material impact on the rights issue.
Source: The Nation