The extended application period for the ongoing N3.23 billion capital raising by C & I Leasing Plc ends today.
The offer period had been extended by additional 17 days to further encourage shareholders to pick up their rights. Application list for the rights issue had opened on Monday November 18, 2019 and was initially scheduled to close on Friday, December 27, 2019.
C & I Leasing is seeking to raise N3.23 billion from existing shareholders through a rights issue of 539 million ordinary shares of 50 kobo each at N6 per share. The rights were pre-allotted on the basis of four new ordinary shares of 50 kobo each for every three ordinary shares of 50 kobo each held as at the close of business on Wednesday, September 04, 2019.
The company would use the net proceeds of the offer to bolster its working capital and increase leasing assets.
AbraaJ Investment Management Limited (AIML), which had secured approval to convert its $10 million loan in C & I Leasing to equities in the Nigerian leasing company, and thus became a majority shareholder, has indicated that it will not be picking its rights. Renounced rights are usually sold through trading on the NSE or through pro rata allocation to other shareholders that demand for additional shares.
C & I Leasing had in January 2019 concluded a massive share reconstruction that saw cancellation of 1.479 billion ordinary shares of 50 kobo each, about 79 per cent of the company’s pre-consolidation issued share capital.
The share capital reconstruction had reduced the leasing company’s outstanding shares from 1.883 billion ordinary shares of 50 kobo each to new total outstanding ordinary shares of 404.25 million ordinary shares of 50 Kobo each. Under the share consolidation, four ordinary shares of 50 kobo each were consolidated into one ordinary share of 50 kobo each.
The company had stated that the purpose of the reconstruction was to allow the company to have enough unissued shares to accommodate the conversion of the Abraaj loan stock to ordinary shares and to raise additional capital through the capital market for business expansion.