C & I Leasing’s N3.23b rights issue opens

C & I Leasing Plc has opened application list for its N3.23 billion rights issue, paving the way for investors to pick up their rights.

Application list for the rights issue opened on Monday November 18, 2019 and will 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 have been 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.

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The company would use the net proceeds of the offer to bolster its working capital and increase leasing assets.

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.

AbraaJ Investment Management Limited (AIML) had earlier indicated its intention to convert its $10 million loan in C & I Leasing to equities in the Nigerian leasing company. The conversion followed the 2018 maturity of the $10 million unsecured, coupon redeemable, convertible loan stock in C & I Leasing.