VFD Group Plc has signed a N50.67 billion Rights Issue, marking a milestone in its drive to fortify its capital base and accelerate strategic growth initiatives.
Chairman, Olatunde Busari, said the move aligns with the company’s vision to build a resilient and diversified investment institution with a growing international footprint.
He recalled that at the Eighth Annual General Meeting, shareholders approved a capital raise of up to N30 billion, of which N12.5 billion had been successfully secured.
“Building on that momentum, shareholders at our Ninth AGM on May 8, again demonstrated their confidence in our vision by authorising the board to raise additional capital of up to N50 billion through various instruments,” he said.
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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 shares held has been approved by the board.
Busari explained that the proceeds, estimated at N49.55 billion net of costs, will be channelled towards deleveraging the balance sheet, funding geographic expansion into the United Kingdom and Southern Africa, and increasing investments in key subsidiaries.
He emphasised that the capital raise underscores the group’s commitment to building a stronger, more liquid, and well-leveraged institution poised to seize emerging opportunities in diverse sectors and regions.
“As we sign these documents, we are not merely executing a financial transaction; we are reinforcing our belief in VFD’s future,” Busari said.
He lauded shareholders for their trust, to advisers for their professionalism, and to regulators for their guidance throughout the process.
Busari added that the Rights Issue marks the start of a new growth phase focused on innovation, value creation, and sustainable prosperity, as VFD Group continues its journey toward becoming a pan-African investment powerhouse anchored on excellence, integrity, and resilience.
He explained that the company’s new rights issue is aimed at deepening shareholder participation and strengthening its investment capacity.
“As an investment company, our goal is to encourage shareholders to increase their stake and invest more in the company. The approval of this rights issue by the board and shareholders reflects their confidence in VFD Group’s vision and performance,” he said.
Group Managing Director, Nonso Okpala, expressed optimism about the cfirm’s ability to raise the targeted funds.
“We are looking to raise N50 billion, and we’re confident this is achievable. The economic climate has created the right conditions for such a capital raise. Two or three years ago, the outlook wasn’t as promising, but today, the economy is opening up and opportunities are emerging.
We’re seeing improved capital formation across various sectors, with increased stability and investor confidence. This gives us the conviction that we can successfully raise the required funds to tap into the economic opportunities unfolding in Nigeria.
We must commend the Federal Government for the ongoing reforms and policy implementations since the start of this administration — they’ve truly helped reposition the business environment.”
Speaking on the broader economic outlook, Okpala observed that the Nigerian economy is headed in the right direction, despite short-term challenges.
“There are some immediate pains to manage, but the government has shown awareness and sensitivity to these issues. From both economic and corporate perspectives, there are significant opportunities to harness.
The insurance, capital market, and banking sectors, for example, are experiencing revitalisation. Their capital bases are strengthening, and profitability is improving. The next challenge is ensuring these gains translate into benefits for the average Nigerian,” he added.
Looking ahead, Okpala said VFD Group is strategically positioned to play a leading role in driving and leveraging developmental reforms across the economy.
“In the coming years, we expect VFD to be at the forefront of Nigeria’s investment sector, leading efforts to mobilise sustainable capital and promote economic growth. The economy thrives when investors and corporates in the investment space effectively marshal capital, implement sound strategies, and strengthen performance — even against global competitors.
Nigeria needs strong investment companies to drive this process, and VFD is ready to seize that opportunity.”, Okpala said.
