VFD Group announces Share Price Adjustment Following 5-for-1 Bonus Share Offer and Dividend Declaration

VFD Group Plc has implemented a significant adjustment to its share price following the company’s recently announced 5-for-1 bonus share offer and dividend declaration for 2025.

The financial services conglomerate saw its share price marked down from ₦96 to ₦15.6 per share on April 23, a move that follows the qualification date for the bonus share offer that passed on April 22.

According to a statement released by the company, the markdown reflects a standard market adjustment associated with the substantial increase in the number of shares in circulation rather than any decline in the Group’s underlying value or performance.

“This is purely a mathematical adjustment,” a company spokesperson explained. “Our fundamentals remain strong, and we remain focused on long-term value creation. Shareholders now have more equity in a growing and ambitious company.”

Additionally, the statement noted that under the terms of the bonus issue, shareholders will receive five additional shares for every one share held as of the April 22 qualification date, effectively increasing their holdings sixfold. The company emphasized that while the share price has been adjusted downward, the overall value of each shareholder’s investment remains preserved.

Before the bonus markdown, one share was valued at ₦96. Following the adjustment, six shares at ₦15.6 each equals ₦93.6, plus a net dividend payment of ₦2.4, maintaining the total value at ₦96.

Furthermore, the company stated that bonus shares will be credited to eligible shareholders on or before June 14, 2025, pending approval at the upcoming Annual General Meeting in May and final clearance from the Securities and Exchange Commission.

Also, VFD Group highlighted its strong financial performance in 2024 as the backdrop for this shareholder reward, noting “record-breaking revenue and profit growth” across its diverse business portfolio. The company has continued its strategic expansion across financial services, real estate, technology, and consumer markets.

Industry analysts suggest the bonus issuance could improve market liquidity for VFD shares, potentially making them more accessible to a broader range of investors.

The Group, which has seen steady growth in market capitalization, reaffirmed its commitment to its growth strategy focused on delivering superior returns through innovation, diversification, and disciplined capital allocation.

In conclusion, the group encouraged shareholders seeking additional information to contact VFD Group’s Investor Relations department or visit the company’s website.