VFD Group, Norrenberger Finalize ₦50.67 Billion Rights Issue to Boost Expansion and Cut Debt
VFD Group Plc has officially signed a ₦50.67 billion rights issue agreement with Lead Issuing House, Norrenberger Limited, marking a major step toward strengthening its capital base, reducing debt, and driving expansion across Africa and the United Kingdom. The signing ceremony, held in Lagos, brought together top executives from both organizations, underscoring a new phase in VFD’s strategic growth plan.
Chairman of VFD Group, Olatunde Busari (SAN), described the capital raise as a “transformational milestone” in the company’s growth story. According to him, the rights issue — which was approved during the company’s 9th Annual General Meeting in May 2025 — demonstrates shareholders’ unwavering confidence in VFD’s long-term vision. The offer comprises 5.07 billion ordinary shares of 50 kobo each, priced at ₦10 per share, and structured as two new shares for every three held, with proceeds expected to yield about ₦49.55 billion net of costs.
Busari explained that the funds raised will be strategically deployed to de-leverage the company’s balance sheet, enhance liquidity, and support expansion into Southern Africa and the UK. He emphasized that the initiative will not only reduce the company’s debt burden but also improve leverage ratios and position VFD Group to capture fresh opportunities in high-impact sectors of the economy. “This is not just a transaction; it’s a reaffirmation of our belief in VFD’s potential to become a pan-African powerhouse,” Busari said.
Group Managing Director, Nonso Okpala, highlighted VFD’s growing presence across four key verticals — market infrastructure, capital markets, financial services, and real estate. He noted that the company is building an integrated investment ecosystem through its subsidiaries, with interests spanning investment banking, fintech, asset management, digital banking, and hospitality. Okpala added that the new capital infusion will boost profitability, reduce reliance on debt, and sustain the company’s aggressive expansion strategy.
VFD Group’s last rights issue in 2024 — valued at ₦12.5 billion — was fully subscribed, enabling the firm to declare both cash dividends and bonus shares in the same financial year, a rare feat in Nigeria’s investment space. With this latest ₦50 billion rights issue, VFD aims to replicate that success on a larger scale, consolidating its position as one of Africa’s most ambitious and diversified investment holding companies.
source: Guardian