VFD Group to raise N30bn fresh capital to enhance operations
VFD Group has announced its plans to raise N30 billion in capital in order to enhance and expand its operations. The infusion of this new capital is aimed at enabling the company to stay committed to its future growth plans. This follows the approval by the shareholders during the Annual General Meeting (AGM) today for an additional N30 billion capital raise, indicating confidence and support for the company’s strategic initiatives.
The virtual event was attended by shareholders, regulators, company directors, government representatives, and members of the media.
Addressing the shareholders at the AGM, the Chairman Olatunde Busari remarked that over the past three years, the company has strategically laid the groundwork for the kind of investment company it aspires to be. He noted that in 2023, VFD Group Plc took a major step by restructuring the firm to enhance its focus as a proprietary investment company, aligning the management structure and organisational model with key strategic objectives.
Busari highlighted the company’s significant milestones achieved during the past year, which have significantly shaped its history and laid a strong foundation for accelerated performance in 2024. These achievements remain strong indicators of VFD Group’s unwavering commitment to the welfare of its shareholders.
The 2023 AGM provided a platform for VFD Group Plc to reinforce its vision and strategic direction, ensuring alignment with its growth ambitions and stakeholder expectations.
The company recorded growth in key financial metrics, with gross earnings increasing by 33 percent to N45.1 billion from N33.8 billion year-on-year, and asset growth of 45.0 percent from N151.5 billion in 2022 to N219.4 billion in 2023.
Based on this performance, the Board recommended a bonus share of four new shares for every one share held, which was approved by the shareholders during the AGM.
The Group Managing Director and Chief Executive Officer of VFD Group Plc, Nonso Okpala, reiterated the monumental significance of the next five years, beginning from 2024, contextualising a critical growth phase in the Group’s evolution, aptly themed “A New Dawn.” He noted the importance of the Group’s transition from a founder-led organisation to a publicly quoted, multiple shareholder-led entity, and a strategic vision of the Group’s inclusive mindset of equally protecting minority interests. To facilitate this transition, VFD Group Plc has developed a comprehensive framework that encompasses a new shareholder structure, a refined investment philosophy, and a redefined corporate culture centred around its evolving identity.
Integral to these success of this framework is the Company’s commitment to maintaining a robust capital base to effectively navigate evolving market conditions. In line with this, the Group remains focused on future plans for an additional N30 billion raise, which received shareholders’ approval during the AGM. While the specific form of this capital raise, whether through debt or equity, will be disclosed in due course, this significant infusion will undoubtedly strengthen the financial position and support future initiatives, acquisitions, and growth capital required for the Group’s investee companies’ expansion.
While closing the meeting, the Chairman thanked the management, staff, and service providers of the company for their consistent service, support, and diligence in the detailed delivery of their jobs and support of the performance for the year ahead.
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