Morison Industries Plc said it has raised N502.2 million new equity funds through the right issue, to provide it with the much-needed boost to reposition its operations.
The allotment results for the rights issue approved by the Securities and Exchange Commission (SEC) showed that the rights issue was oversubscribed by 1.12 million ordinary shares.
Against 836.98 million shares placed on offer, shareholders took 838.11 million ordinary shares.
Morison Industries last year floated a new capital raising for about N502.2 million in new equity funds through new share sale to existing shareholders.
It offered a rights issue of 836.98 million ordinary shares of 50 kobo each at 60 kobo per share on the basis of 11 new ordinary shares for every two ordinary shares of 50 kobo held as at August 25, 2017.
GTI Securities Limited acted as the stockbroker to the supplementary share issuance while GTI Capital Limited was the issuing house.
Managing Director, Morison Industries Plc, Nwabueze Oputa, said the new equity funds would be deployed to improve working capital and finance the restructuring of the company.
“We were able to get many shareholders to subscribe to the shares due to our extensive research on the prospects of the company. Many subscribers were also impressed by the fact that all offers that we had handled in the past usually turned into goldmines, and the facts are out there. So the trust in GTI Capital positively rubs off on the exciting prospects of a recapitalised Morison Industries,” Hassan said.