VFD Group Plc, a Nigerian investment institution, has launched a ₦50.7 billion ($34.5 million) rights issue following shareholder approval at its ninth Annual General Meeting (AGM) held on Wednesday in Lagos.
The company said the capital raise is aimed at strengthening its balance sheet and funding its pan-African and global expansion.
This marks VFD’s second major capital raise in two years. At its eighth AGM in 2024, shareholders had approved a ₦30 billion ($20.3 million) capital raise, of which ₦12.5 billion ($8.45 million) was successfully secured.
Building on that momentum, Olutunde Busari, Group Chairman, said investor confidence continues to underpin the company’s strategic growth ambitions.
“At our ninth Annual General Meeting, shareholders once again demonstrated their confidence in our vision by authorising the Board to raise additional capital of up to ₦50 billion ($34.5 million) through various instruments,” Busari said.
He explained that the Board, following consultations with advisers, approved a rights issue of 5,067,396,400 ordinary shares of 50 kobo each, offered at ₦10 ($0.0067) per share, based on two new shares for every three existing shares held.
Busari said the net proceeds – estimated at ₦49.5 billion ($33.7 million) after deducting costs – will be directed toward reducing the company’s debt exposure, funding its regional expansion, and deepening investments in core subsidiaries.
Nonso Okpala, Group MD, described the initiative as a “strategic capital push” designed to position VFD for growth opportunities across African economies.
“This capital raise plan is a strategic capital push for VFD Group’s global expansion drive, to capitalize on the growth wave across African economies,” Okpala said. “It’s not merely to influence the balance sheet or profitability, but a move driven by necessity.”
VFD’s renewed optimism follows a strong rebound in performance. The group swung from a ₦700 million ($1.08 million) pre-tax loss in 2023 to a ₦11 billion ($7.44 million) pre-tax profit in 2024 – a 1,202% turnaround that Okpala described as “proof of concept for our proprietary model.”
“ It demonstrates our capacity to turn market dislocations into arbitrage opportunities,” he added. “We are presenting a quantifiable reality, not a theory.”
The rights issue is being arranged by Norrenberger as the lead issuing house, alongside United Capital, CardinalStone, TRW Stockbrokers, Anchoria Asset Management, DLM Capital, BGL, ARM, PwC, Sterling Bank, and United Bank for Africa.
Founded in 2009, VFD Group is headquartered in Lagos, Nigeria. The company operates across more than eight core business areas, including microfinance banking, stockbroking, insurance brokerage, asset management, and leasing services, among others.
Its diversified structure comprises over 40 subsidiaries and associate companies, some of which have expanded operations into Ghana and other parts of West Africa, underscoring its growing regional footprint.
Listed on the Nigerian Exchange Limited (NGX) under the ticker symbol “VFD,” the company closed the October 9 trading day at ₦11.5 ($0.007), with a market capitalization of ₦14.6 billion ($9.96 million).
Note: All financial figures have been converted using the official average exchange rates of ₦1,478.9/$1 for 2024, ₦645.1/$1 for 2023 and ₦1,470.6/$1 as of October 8, 2025.
