VFD Group partners Norrenberger on N50.67bn rights issue to fund expansion

VFD Group Plc has signed an agreement with its lead issuing house, Norrenberger Limited, to launch a N50.67 billion rights issue aimed at boosting its capital base, cutting debt, and supporting expansion into new markets across Africa and the United Kingdom.

The signing ceremony, held on Wednesday in Lagos, marked a key step in the investment firm’s capital-raising exercise, which follows shareholder approval at its ninth annual general meeting on May 8, 2025.

The offer comprises 5.07 billion ordinary shares of 50 kobo each, offered at N10 per share on the basis of two new shares for every three held. The transaction is expected to generate a net proceed of about N49.55 billion after expenses.

Olatunde Busari, chairman of VFD Group, said the capital raise reflects investors’ trust in the group’s long-term strategy and its ambition to become a pan-African investment powerhouse.

“This capital raise is more than a transaction — it is a reaffirmation of our shared belief in VFD’s future,” he said. “We are building a resilient and diversified investment group that stands for excellence, integrity, and sustainable prosperity.”

Busari explained that the funds would be channelled into deleveraging the company’s balance sheet, expanding operations into southern Africa and the UK, and strengthening investments in existing subsidiaries.

He noted that the group’s N12.5 billion rights issue in 2024 was fully subscribed, enabling VFD to reward shareholders with both cash and bonus dividends, a rare feat in Nigeria’s capital market.

“We have done it before, and we are confident this exercise will deliver even greater value. The goal is to expand our portfolio, strengthen our financial structure, and create sustainable returns for shareholders,” he said.

Group managing director, Nonso Okpala, said the company’s expansion strategy focuses on four priority areas: market infrastructure, capital markets, financial services, and real estate.

He added that through its subsidiaries, VFD is creating an integrated ecosystem spanning investment banking, asset management, fintech, and hospitality , all geared towards value creation and innovation.

“We are at a crucial stage in our growth journey,” Okpala said. “The new capital will enhance our ability to unlock profitability, replace debt with equity, and accelerate investments across key sectors and regions.”