Stock Liquidity Attracts Institutional Investors
After experiencing a notable 25% increase from the rights issue price of N10.00 per share, which closed at N12.50 on March 13, 2026, traders capitalized on the robust demand and liquidity to realize profits. During this period, approximately 5.7 million shares changed hands, trading between N11.25 and N12.50.
The reduction in stock price created new opportunities for investors. On Tuesday, shares opened for bidding and swiftly climbed to N12.00 per share, as those who did not meet their investment goals during the rights issue seized the chance to purchase at the lower price of N11.25.
Analysts at Anchoria Securities, a leading securities firm and subsidiary of VFD Group, indicated substantial interest in the shares. They noted that both existing and new shareholders are keen to enter the market, especially those whose participation in the rights issue was incomplete.
They further explained that excess subscription proceeds from the rights issue would soon be returned to designated shareholders. This anticipation has driven affected investors to explore secondary market options, even if it means paying above the original subscription price of N10.00. The rights issue is expected to enhance liquidity, thereby drawing interest from both domestic and international institutional investors, who were previously constrained by a limited number of issued shares.
Management at VFD Group views the recent capital raise of NOK 50.1 billion as well-timed, bolstering confidence among domestic and international investors as the economy shows steady improvement. Melvin Eseoke, Investor Relations Manager at VFD Group, emphasized that this capital raise is a strategic move aimed at leveraging emerging opportunities.
Eseoke elaborated on the company’s optimistic outlook, which arises from extensive discussions during their 2024 strategy sessions. Although uncertainties surrounding the 2027 elections have tempered some enthusiasm, a broad confidence in economic fundamentals remains. The company aims to capitalize on new opportunities in 2026, particularly as its portfolio of high-growth companies requires further investment to sustain its growth trajectory.
By conducting a rights issue of N50 billion, VFD Group successfully secured a 100% response rate from shareholders, reinforcing trust in the management’s ability to execute strategic plans for future growth. This influx of capital enhances VFD Group’s core strengths, enabling the company to pursue profitability goals with an average return on equity of 20% reported for FY2025, while aspiring to achieve leading returns in the Nigerian capital market.
Analysts have pointed to VFD Group’s appeal stemming from its strategic investment approach and comprehensive ecosystem. The company holds significant stakes in key market infrastructures, including the Nigerian Exchange Group, Central Securities Clearing System Ltd., and NASD-OTC Exchange, all of which have quadrupled in value over the last two years. By focusing on strategic investments in vital public utilities and nurturing potential unicorn companies across various sectors, VFD Group provides diversified access to both public and private market opportunities.
