Hot SourceOluchi Chibuzor
VFD Group Plc has officially launched its N50.67 billion rights issue, marking a major milestone in its strategic growth plan to strengthen its capital base, expand internationally, and deepen investments across key economic sectors.
The formal signing ceremony, held in Lagos, brought together the company’s board, shareholders, and financial advisors to commemorate what executives described as a defining moment in VFD’s growth journey.
Speaking at the event, the Chairman of VFD Group Plc, Olatunde Busari noted that 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—represents more than a financial transaction.
He explained that proceeds from the offer, estimated at N49.55 billion net of costs, will be deployed to strengthen the company’s balance sheet, fund its geographical expansion into the United Kingdom and Southern Africa, and boost investments in key subsidiaries.
According to him, “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. At our 8th annual general meeting(AGM), shareholders approved a capital raise of up to N30 billion, of which N12.5 billion had been successfully raised. Building on that momentum, at our 9th AGM held on May 8, 2025, shareholders, once again, demonstrated their confidence in our vision by authorising the Board to raise additional capital of up to N50 billion through various instruments.
He noted that the capital raise reflects their continued commitment to building a stronger, more resilient, and diversified investment group.
These, he said, would enhance liquidity, improve leverage ratios, and position VFD Group to capture emerging opportunities across multiple sectors and regions.
“I wish to express my profound appreciation to our shareholders for their unwavering trust, to our advisers for their professionalism and dedication, and to our regulators for their steadfast guidance and partnership throughout this process. As we sign these documents today, we are not merely executing a transaction, we are reinforcing our collective belief in VFD’s future. This rights issue marks the beginning of a new phase of growth, innovation, and value creation for our stakeholders. Together, we will continue to build a pan-African investment group that stands for excellence, integrity, and sustainable prosperity,” he said.
Also speaking, the Group Managing Director, Nonso Okpala, emphasised VFD’s strategic focus on four core sectors — market infrastructure, capital markets, financial services, and real estate/hospitality.
He highlighted the firm’s investments in key Nigerian exchanges, asset management, digital banking, and fintech ventures such as Slitter and Bond, which he described as “leading innovation drives within the economy.”
“In the next 18 months, we have a strong prospect of achieving unicorn status in our fintech portfolio. Our objective is to deepen our current investments in Nigeria while replicating success stories across Africa and other geographies,” he said.
He added that the company’s expansion strategy comes amid economic reforms under the current administration, which, despite public debate, have opened new opportunities for discerning investors.
The equity raise, he said, will enhance VFD’s liquidity, improve leverage ratios, and enable the company to unlock hidden value in existing investments.
According to him, “As we replace debt with equity, we are positioning VFD to lead in innovation, cross-sector collaboration, and data-driven value creation,” he said. “We are not just raising funds; we are building an institution that will play a strategic role in the future of Nigeria and Africa’s economic development.”
The event drew the participation of financial advisors, directors, and institutional investors who reaffirmed their confidence in the group’s long-term vision. The rights issue, now open to shareholders, is expected to consolidate VFD Group’s position as one of Africa’s most dynamic investment holding companies.
