Flour Mills of Nigeria has announced that the subscription for its N40 billion Rights Issue will begin on Monday, January 15, 2018. The exercise is expected to be concluded by Wednesday, February 21, 2018.
In a statement issued today by the Head of Listings Regulation Department at the Nigerian Stock Exchange NSE, Mr Godstime Iwenekhai, the firm is offering about 1.5 billion ordinary shares of 50 kobo at N27 per share on the basis of nine new ordinary shares for every 16 ordinary shares held by shareholders as at December 8, 2017.
“Dealing Members are hereby notified that the Rights Issue of Flour Mills of Nigeria Plc of 1,476,142,418 ordinary shares of 50 Kobo each at the offer price of N27.00 per share on the basis of nine (9) new ordinary shares for every sixteen (16) ordinary shares held as at 8 December 2017 will be opened for subscription as shown;
“Acceptance list opens: Monday, 15 January 2018 (and) acceptance list closes: Wednesday, 21 February 2018,” the statement noted.
Last week, Flour Mills confirmed receiving approvals from the NSE and the Securities and Exchange Commission (SEC) to go ahead with the exercise.
The issue price of N27, the firm said, represents a discount of 23 percent to its closing share price on the date of announcement.
Group Managing Director of Flour Mills of Nigeria, Mr Paul Gbededo, recently explained that, “The rights issue is part of our strategy to grow and build long-term value for all stakeholders.