Trading in Royal Exchange’s N2.06bn rights issue begins

The Nigerian Exchange (NGX) on Wednesday opened trading on the N2.06 billion rights issue of Royal Exchange Plc, allowing new investors to participate in the pre-allotted shares.

In a circular, the NGX indicated that shareholders with full or partially renounced shares can trade on their allotments at the secondary market to take advantage of the premium on the rights’ price.

Royal Exchange, which is pursuing a voluntary recapitalisation of its businesses, is seeking to raise N2.06 billion in new equity funds from existing shareholders through the issuance of 4.116 billion ordinary shares of 50 kobo each at 50 kobo per share.

The rights issue was pre-allotted on the basis of four new ordinary shares of 50 kobo each for every five ordinary shares held as at the close of business on Monday, March 06, 2023.

The trading on the rights will continue till January.

It will be recalled that shareholders of Royal Exchange had authorised the board of the company to raise new equity capital of up to N2.06 billion from existing shareholders.

At an extraordinary general meeting, shareholders approved resolutions authorising the issuance of 4.112 billion ordinary shares of 50 kobo each to existing shareholders with a view to raising N2.058 billion.

The meeting mandated the board to fix the offer price and shareholders also waived their pre-emptive rights to allow the company offer unsubscribed shares to interested investors, on the same terms as the rights issue.