Portland Paints and Products Nigeria (PPPN) Plc has secured the approval of the Nigerian Stock Exchange (NSE) to raise more than N1 billion in new equity funds in its bid to expand its business.
A regulatory document at the Exchange indicated that the Quotation Committee of the Exchange, which oversees new and supplementary issuance and listing, has approved the application submitted by the board of directors of PPPN and its professional advisers.
PPPN would thus be raising N1.02 billion through a rights issue of 600 million ordinary shares of 50 kobo each at N1.70 per share.
The provisional allotment for the rights issue is on the basis of three new ordinary shares for one ordinary share. The rights issue price of N1.70 represents a discount of 5.5 per cent to the market value of N1.80 per share at the NSE.
Portland paints, a Subsidiary of UAC of Nigeria Plc had earlier made known its intention to raise capital in a bid to fast track growth.
The Chairman of the company, Larry Ettah, stated that the planned rights issues proceeds will be applied to minimize the debt exposure risks of the business as well as carry out targeted expansion in operations.
“The business will focus on its growth brands as well as make the necessary investment in marketing to improve its brands’ awareness and visibility,” he said
For the 2015 year the company said it experienced unprecedented challenges, occasioned by some macro-economic concerns, but assured shareholders that the company is currently restructuring its operations.
“During the year under review (2015), we commenced a process of restructuring the business focusing on internal efficiencies and reviewing our route to market model in a bid to ensure that we build a sustainable future for the business”.
