Markets
Shareholders approve NGX’s proposed N10 billion capital raise
Shareholders of Nigerian Exchange Group (NGX) Plc have given their approval for the group’s initiative to raise capital of up to N10 billion naira through a rights issue.
The approval was given at the group’s 63rd annual general meeting (AGM) held in Lagos.
The capital raise will involve the issuance of ordinary shares, with the terms, conditions, and timing determined by the directors.
The shareholders also ratified the appointment of Mr. Temi Popoola, who was appointed as the Group Managing Director/Chief Executive Officer by the board after the last AGM following the expiration of tenure of Mr. Oscar Onyema.
Additionally, the shareholders approved a final dividend of N1.5 billion at 75 Kobo per share for the year ended December 31, 2023. Together with an interim dividend of N495.53 million at 25 Kobo per share disbursed in August 2023, the total dividend for FY 2023 stood at N1 per share.
Other resolutions passed:
- At the upcoming AGM, the shareholders will also have the opportunity to consider and pass the following special resolutions:
- That the company be and is hereby authorised to increase its share capital from N1,102,309,954 to N1,347,309,954 (or to otherwise increase its share capital to an amount sufficient to accommodate the rights issue). iii.
- The directors be and are hereby authorized to appoint such professional parties and perform all such acts as may be necessary to give effect to the above resolutions, including without limitation, complying with directives of any regulatory authority.
They also considered and passed the following as special resolutions:
- That Clause 6 of the Company’s Memorandum of Association be amended to reflect the new share capital of N1,347,309,954 by the increase and addition of 490,000,000 ordinary shares of N0.50 each ranking pari passu with the company’s existing ordinary shares, bringing the company’s total share capital to N1,347,309,954, made up of 2,694,619,907 issued ordinary shares of N0.50 each.
- That the directors’ annual fees for the financial year ending December 31, 2024, and for succeeding years until reviewed by the AGM be and are hereby fixed at N12,000,000 for Chairman, and N7,500,000 for each other Non-Executive Director respectively. Such fees are to be payable quarterly in arrears or at such other intervals as approved by the Board.
Addressing shareholders at the meeting, Dr. Umaru Kwairanga, Chairman of the Board of Nigeria Exchange Group Plc, said the NGX Group recently underwent a pivotal transformation in its executive leadership across its subsidiaries, a move that is in perfect alignment with its meticulously crafted succession plan.
Kwairanga noted that in September 2023, the group marked the culmination of an era and the dawn of a new chapter with the announcement of the retirement of former Group Managing Director, Oscar Onyema OON, after years of distinguished service.
- “This transition also saw the departure of several key NGX Board Executives, including Mr. Abubakar Mahmoud, Erelu Angela Adebayo, Mr. Kamarudeen Oladosu, Mr. Yomi Adeyemi, and Mr. Seyi Osunkeye, as well as NGX Regco Board Executives, Mrs. Catherine Echeozo and Mrs. Foluke Oyeleye, all of whom have contributed immensely to our growth and success.
- I wish to express profound gratitude to Mr. Oscar N. Onyema OON and all departing board members for their monumental contributions, unwavering dedication, and the visionary leadership they have provided.
- Their collective efforts have steered the Group through diverse economic and political challenges, leaving an indelible mark on our evolution and fortitude. We celebrate their achievements and their pivotal role in shaping the NGX Group into a resilient and dynamic entity.
- In keeping with our Succession Plan, the Board was delighted to appoint Mr. Temi Popoola, the former CEO of Nigerian Exchange Limited, as the new Group Managing Director and CEO. This strategic appointment promises a seamless transition, ensuring continuity and the sustained momentum of our strategic objectives and initiatives.” he said.
Popoola, on his part, said the NGX Group witnessed a surge in gross earnings, soaring by 57.4% to reach N11.8 billion in FY 2023, up from N7.5 billion in the preceding year.
He noted that the growth stems from the group’s dynamic revenue streams, including a significant uptick in transaction fees by 52.6%, driven by increased trading activities, alongside substantial increases in listing fees and rental income by 42.2% and 41.8%, respectively.
- “Furthermore, our strategic investments yielded a 5.4% increase in treasury investment income. A pivotal highlight of the year was the stellar performance in other income, which contributed 29.7% of our gross earnings, marking a 163.6% increase to N3.504 billion.
- This was driven by a 44.1% growth in market data income and an impressive 304.8% surge in other operating income, underscoring the effectiveness of our diverse revenue-generating strategies.
- This operational success enabled the Board to approve a final dividend of N1.5 billion at 75 Kobo per share for the year ended December 31, 2023. Together with an interim dividend of N495.53 million at 25 Kobo per share disbursed in August 2023, the total dividend for FY 2023 stood at N1 per share.
- The transformation in our financial indicators highlights a compelling success story, with operating profit transitioning from a loss to a gain of N433 million, marking a 130.2% improvement.
- This signifies a significant stride toward heightened operational efficiency and profitability. Our pre-tax profit soared by 639% to N5.27 billion, a testament to our robust revenue streams and strategic cost management, which also propelled a remarkable 788% increase in after-tax profit to N5.25 billion, enhancing our after-tax profit margin to 44.49%.
- While total expenses rose by 27.3%, this increase reflects strategic investments in our future growth. Notably, a 31% rise in operating expenses, primarily due to foreign currency-related expenses, underscores our strategic foresight in navigating global economic fluctuations,” he said.
