Rights Issue, opened on 20 Sept, 2017, will close on Monday, 30 October 2017.
Use of Proceeds:
80% of proceeds to be used as working capital
12% of proceeds to be invested in technology, innovation and digitalization
8% of proceeds to be invested in customer touch points
Details of the Rights:
Being Issued – 12,133,646,995 Ordinary Shares of 50 kobo each
Rights Price – N4.10 per share
Gross Issue Proceeds – N50, 000,000,000
Provisional Allotment – 5 new Ordinary Shares for every 7 Ordinary Shares of 50 kobo each held as
at the close of business on August 21, 2017
Worthy of Note:
(1) The Rights is offered at 31.55% discount to the stock’s current market price of N5.99,
(2) The theoretical market price of the stock after the Rights is estimated at N5.20.
In all two cases above, upside potential on the Rights price ranges between 26.9% and 46.10%.
Shareholders who do not wish to take up their Rights should take a cue from the wide upside potential in trading their Rights to interested investors.
