Lafarge Africa Plc has revealed plans to raise N89.2bn by way of a rights issue of 7.4 billion shares.
The firm, in a statement on Tuesday signed by its Company Secretary, Adewunmi Alode, said the Securities and Exchange Commission had cleared it to open its announced N89.2bn rights issue.
Alode said the N89.2bn would be raised by issuing six new shares for every seven shares held by shareholders as of December 4, 2018, which is the qualification date.
He stated that the 7,434,367,256 ordinary shares of 50 kobo each at N12.00 per share would be payable in full on acceptance.
Alode added that the acceptance list opened on December 17, 2018 and would close on January 23, 2019.
According to the statement, the rights being offered are tradable on the floor of the Nigerian Stock Exchange for the duration of the offer.
The statement read in part, “Please read the prospectus/rights circular and where in doubt, consult your stockbroker, fund/portfolio managers, accountants, banker, solicitor or any other professional adviser for guidance before subscribing.
“The lead issuing house is Chapel Hill Denham, while the joint issuing house is Stanbic IBTC Capital.”
The nation’s stock market witnessed a rebound on Tuesday as the market capitalisation of listed equities increased by N74.93bn.
The market capitalisation rose to N11.255tn on Tuesday from N11.180tn on Monday, while the All Share Index gained 0.67 per cent to settle at 30,814.19 basis points.
Analysts at Afrinvest Securities Limited attributed the gain recorded to buying interests in bellwethers such as Dangote Cement Plc, Guaranty Trust Bank Plc and FBN Holdings Plc.
Investor sentiment advanced to 1.8x from 0.9x recorded on Monday as the year-to-date loss moderated to -19.4 per cent.
Activity level also improved as average volume and value traded appreciated by 47.1 per cent and 193.9 per cent to 316.199 million units and N5.090bn, respectively.
The top traded stocks by volume were Zenith Bank Plc (102.286 million units), AXA Mansard Insurance Plc (40.057 million units), Lafarge Africa Plc (25.905 million units), Access Bank Plc (22.208 million units) and GTB (15.970 million units), while Zenith Bank (N2.344bn), GTB (N553.8m), Unilever Nigeria Plc (N453.5m), Guinness Nigeria Plc (N384.5m) and Lafarge (N309.5m) were the top traded stocks by value.
Performance across sectors was largely bullish as three indices closed in the green.
The industrial goods index emerged the highest gainer with a 1.63 per cent gain on the back of major gains recorded by Dangote Cement and Cement Company of Northern Nigeria Plc.
The oil and gas index was the second highest gainer, advancing by 1.50 per cent as a result of price appreciation in major stocks such as 11 Plc and Forte Oil Plc.
It was followed by the banking index, which appreciated by 0.48 per cent following gains in GTB and Diamond Bank Plc.
On the flip side, the consumer goods index decreased by 0.91 per cent as a result of the profit-taking in Nigerian Breweries Plc and Unilever.
The insurance index dropped by 0.07 per cent on the back of losses in Continental Reinsurance Plc and Mutual Benefits Assurance Plc.
At the end of trading on Tuesday, 24 stocks emerged gainers against 11 losers.
The top five gainers were Neimeth International Pharmaceuticals Plc, Forte Oil, Cement Company of Northern Nigeria, Diamond Bank and UACN Property Development Company Plc, whose respective share prices gained 10 per cent, 9.91 per cent, 9.91 per cent, 9.62 per cent and 9.46 per cent.
The top five losers were Access Bank, Mutual Benefits, Nigerian Breweries, Lasaco Assurance Plc and Unilever, which saw their share prices depreciate by 5.52 per cent, 4.76 per cent, 3.40 per cent, 3.33 per cent and 2.76 per cent, respectively.
Analysts at Afrinvest said, “Although we maintain a bearish outlook for the equities market, we do not rule out the possibility of persistent buying interest particularly on fundamentally sound stocks in the near term.”
C &I Leasing Plc has applied to reduce its issued and paid-up share capital from N808.505 million, which is 1,617,010,000 ordinary shares of 50 kobo each to N202,126, 250 share being 404,252,500 ordinary shares of 50 kobo each.
In notification to the Nigerian Stock Exchange (NSE), C & I Leasing Plc yesterday said the reduction would be achieved through the consolidation of every four ordinary shares currently held into one new share in the company. The share capital so reduced, it said, would be added to the company’s share premium account.
“The purpose of the reconstruction is to allow the company to have enough unissued shares to accommodate future plans to raise capital through the equity capital market. The additional capital will be used to finance the company’s expansion plan, extinguish some liabilities and enhance the company’s capital mix,” the company said.
According to the company, the qualification date for the share consolidation shall be Wednesday 12th December 2018 while the shares of the company will be placed on suspension from Thursday 13th December 2018 to Thursday 27th December 2018 to allow for the consolidation exercise. The shares of C & I Leasing Plc closed at N1.94 per share yesterday.
The company recorded improvement in its nine months results, growing profit after tax by 35 per cent. The unaudited results released yesterday showed gross earnings of N19.9 billion, up 15.6 per cent from N17.2 billion, while lease rental income rose to N13.9 billion, up by 17.5 per cent from N11.8 billion in 2017.
Personnel outsourcing income increased by 10.4 per cent to N5.0 billion, from N4.5 billion, bringing net operating income to N5.7 billion, up 8.6 per cent from N5.2 billion.
C & I Leasing Plc ended the period with profit before tax (PBT) of N1.3 billion, up 11.4 per cent from N1.2 billion. PAT jumped by 25 per cent to N1.2 billion, compared with N950 million in 2017.
Speaking on the results, the Managing Director/CEO of C & I Leasing Plc, Mr. Andrew Otike-Odibi said: “The Company recorded an increase of about 15.6% in revenue from N17.2 billion in the corresponding period of 2017 to N19.9 billion in 2018 and a stronger improvement in our profit after tax (up by 25 per cent from N0.95 billion in 2017 to N1.2 billion in 2018) while the group has continued to deliver a healthy performance despite the challenging operating environment. This result was achieved on the back of increased efficiency from all the business units as well as improvement in capacity utilisation of both marine and non-marine assets.”
The Debt Management Office has listed a second Federal Government N100bn Ijarah Sukuk on the Nigerian Stock Exchange and the FMDQ OTC Plc.
The Director-General, DMO, Patience Oniha, while speaking at the investor presentation in Lagos, said the government was happy and proud of the success stories of the first Sukuk and decided to issue a second one.
She said a lot of encouragement was received from construction companies because they got their money as and when due, which made the projects go as planned.
She noted that the proceeds of the first Sukuk issuance, which was invested in road construction, brought reprive to road users, improved travel times between major commercial cities, linked borrowing and government expenditure to specific critical projects, helped increase the flow of cargo and passenger traffic across major cities, improved infrastructure delivery across the country, among others.
Oniha noted that the retail investors’ participation in the first Sukuk was about five per cent, adding that she hoped more retail investors would partake in the second one.
According to her, stockbrokers will be involved in the process to get a lot of retail investors to participate.
She said, “This second Ijarah Sukuk is due in 2025 and has a rental rate of 15.743 per cent. We listed the Sukuk on the NSE and the FMDQ on Thursday, which was the date it opened, and it will close on December 17, 2018.
“The allotment date is December 21, 2018. The proceeds from the Sukuk will be invested in road infrastructure development, just like the last one. Though the proceeds will not see the roads to completion, it will go a long way in improving the state of our roads.”
Oniha stated that the first Sukuk ensured the execution of road projects across all regions of the country, adding that it also led to a multiplier effect that created jobs around the country.
“The first Sukuk increased retail participation in the capital market as over N15.6bn of it has been traded since listing.” she said.
She added, “We are aware of the fear people have about the 2019 elections, but we want to assure you that no matter the government in power, debts will always be serviced and people will receive their money at maturity.
“The main objective of the second Sukuk is to sustain the rehabilitation and construction works on the 25 key economic roads in the six geopolitical zones with three roads now added for more reach.”
Oniha, however, noted that the DMO and the Federal Government were working to reduce the debt profile of the country as the ratio of debt service to revenue was higher than what it used to be.
According to her, if revenues are higher in the country, borrowing will reduce.
The DMO boss also noted that the tax to Gross Domestic Product ratio was low at six per cent, which she said were signs that citizens were not paying enough taxes.
She said, “This has to change. We cannot continue that way. Taxes will be introduced on select goods such as heavily-consumed goods.
“The Federal Inland Revenue Service is doing a lot to generate more taxes for the government and we will give them maximum support.”
The Deputy Managing Director, FBNQuest Merchant Bank Limited, Taiwo Okeowo, said operators were working to ensure Sukuk issuances become one of the major forms of fund raising for infrastructure by the government.
The Securities and Exchange Commission (SEC) yesterday said the country’s infrastructure deficit would hit $878 billion by 2040, and therefore called for active utilisation of green bond for infrastructural gap.
SEC acting Director-General, Mary Uduk, stated this at the 2018 annual workshop organised by the Capital Market Correspondents Association of Nigeria (CAMCAN) in Lagos.
She said Nigeria should tap into green bond opportunities, adding that the commission would continue to promote an active enabling and regulative environment for its issuance.
“The future holds opportunities for renewable energy, energy efficiency, infrastructure, food, agriculture, and the task ahead is to ensure funds are channeled to green projects with multiple socio-merits,” Uduk said.
Uduk said there must be more domestic participation in green bonds investment for Nigeria to claw its way out of deficit in infrastructure, power and energy, transportation as well as eliminating environmental degradation.
The DG SEC, who was represented by Head, Registration and Market Infrastructure Department, SEC, Mr. Emomotimi Agama, said it was necessary for Nigeria to stand at the forefront of innovations and initiatives.
She noted that the second tranche of green bonds which had been issued presented an opportunity for the country to solve its infrastructural deficit.
“The biggest opportunity, to my mind, which green bond issuances will present, is the potential to solve Nigeria’s infrastructural deficits, improve agriculture and alleviatepoverty as well as protecting the environment-a multi-faceted strategy,” she said.
Also speaking, the Managing Director of FMDQ OTC Securities Exchange, Mr. Bola Onadele, said $155 billion had been realised from the green bonds issuance, thereby gaining attention of investors.
Onadele, who was represented by the Senior Vice President, Economic Development Division at the Exchange, Emmanuel Etaderhi, said the country’s resources was not growing in tandem with the rising population.
He stated that the reason for Nigeria’s woeful performance in the power and energy sector was due to its inability to tap into energy utilisation from the sun like other European countries.
According to him, the challenges affecting green bonds include low level of local participation in green bond verifiers, lack of investible projects, cost of verification and lack of understanding on the part of key investors.
“Green bond investors enjoy waivers relating to tax, and in the next 15 years, we will require $7 trillion in investments connecting sustainable finance to capital markets,” he said.