May & Baker Nigeria acquires 1.86 billion naira from rights issue

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May & Baker Nigeria Plc by way of a rights issue, has listed an additional 745,234,886 ordinary shares on the Nigerian Stock Exchange.

The additional shares arose from company’s rights Issue of 980,000,000 ordinary shares of 50 kobo each at 2.50 naira per share on the basis of one new ordinary shares for every one shares ordinary shares held as at 4 September 2018.

The company was 76.04 percent successful and realised about 1.86 billion naira from the rights issue. The application had opened on Monday October 22, 2018 and closed on Wednesday November 28, 2018.

Mr. Nnamdi Okafor, the Managing Director of May & Baker, urged shareholders to take advantage of the rights issue and position themselves in order to be able to reap the full benefits of their investments in the company. He revealed that the rights issue would further help to reduce finance costs, increase capacity and bring greater returns to shareholders.

Okafor, who highlighted the third quarter results and the growth outlook of the healthcare company, said recent strategic investments and new growth initiatives being undertaken by the company would boost returns in the years ahead.

The Managing Director noted that the company will pay dividend on the new ordinary shares to be issued through the rights issue, despite the fact that the net proceeds of the rights issue will be received towards the end of current business year.

He said while the impact of the recapitalisation will become visible in the 2019 business year, the company will pay dividend for the 2018 business year on the old and new shares to be issued.

According to Okafor, “we derive our confidence mainly from the pedigree, performance track records and strategic plans of the company which we believe should appeal to all discerning investors. The new funds will be used to strengthen their investments and make the company more profitable”.

 

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