TheCable

The Nigerian Exchange Group Plc (NGX Group) says its shareholders have approved a capital raise of N10 billion through a rights issue.

The decision was made at the 63rd annual general meeting on Monday, according to a statement.

A rights issue is an invitation to existing shareholders to purchase additional new shares in a firm.

During the meeting, the group also unveiled plans to embark on a comprehensive digital transformation strategy to expand its business operations in line with its overarching strategy.

“Notably, NGX Group, subject to regulatory approval, discussed its authorization on a rights issue to raise capital of up to N10 billion with a subjoined resolution to increase its share capital to sufficiently accommodate the rights issue,” NGX said.

“All resolutions were approved by shareholders just as appointment and reelections of directors were ratified.

“Following substantial authorization across its agenda, NGX Group introduced plans to propel the markets with a digital transformation journey that includes an online platform for public offers and deep investments in its technology stack amongst others.

“The platform will provide a smarter and efficient way for Issuers to raise capital and enhance the subscription process and operational workflow of POs in the capital market including initial public offerings (IPOs), rights issues and other public offers.”

Also at the meeting, the board of directors approved the declaration of a final dividend and ratified the appointment of Temi Popoola as the managing director and chief executive officer (CEO) of NGX Group.

Commenting on the development, Umaru Kwairanga, chairman of NGX Group, appreciated the shareholders for their assent to “the critical business we conducted today”. 

“As the Board oversees the strategic direction and gives management the necessary support and guidance, we believe that the coming year will be a better one in terms of value created for our shareholders,” Kwairanga said.

“NGX Group is positioned to capitalize on opportunities amid the positive and forward-looking reforms by the government and our stakeholders should rest assured we will deliver excellently.”

On his part, Popoola also thanked the shareholders, customers, employees, regulators, and directors for their steadfast support.

“In a year that underscored NGX Group’s strategic agility and operational excellence, we witnessed growth stemming from our dynamic revenue streams,” he said.

“We are optimistic and well-positioned to forge a future marked by success, resilience, and prosperity.”

Addressing the firm’s digital transformation agenda, Popoola said “the future of our business and the capital markets hinges on technology”.

“That is why we are driving this digital transformation journey across our subsidiaries through the Group,” he added.

“NGX Group’s digital transformation will democratize access to public issuances for every Nigerian with a mobile phone, supporting capital-raising efforts for companies.”

He said the group also aims to commercialise its technology solutions and expand its footprint across Africa.