Portland Paints and Products Nigeria, PPPN Plc, has unveiled plans to raise about N1.98 billion from the existing investors through a Rights Issue.
The company, which is owned 51 per cent by UAC of Nigeria Plc has sent its application regarding the Right Issue to the Nigerian Stock Exchange(NSE).
Although the PPPN did not disclose when the issue would be made, the NSE notified stockbrokersyesterday that the company will issue 600 million ordinary shares of 50 kobo each at N3.30 per share on the basis of three new shares for every two shares already held to shareholders.
“Dealing Members are hereby notified that PPPN has through its stockbroker, Stanbic IBTC Stockbrokers Limited, submitted an application to the NSE for approval and listing of a Rights Issue of 600 million ordinary shares of 50 Kobo each at N3.30 per share on the basis of three new ordinary shares for every two ordinary shares held,” the exchange said.
The Chairman of PPPN, Larry Ettah has last year given indication of the right issue when he told the shareholders at the company’s s annual general meeting of the company that it would raise additional additional capital in pursuit of its plan to improve returns and address the high leverage position of the company and other business expansion plans.
He had said the company would focus on innovation and seek opportunities to introduce new products into its array of brands as it pursues increased profitability.
PPPN recorded 159 per cent growth profit after tax in 2014 to N148 million, from N57.3 million in 2013. However, the company did not pay dividend.
