The Securities and Exchange Commission (SEC) has granted C&I Leasing Plc a 10-day extension for the closure of its N3.2 billion rights issue. The rights issue, which opened November 18, 2019, is now scheduled to close on 13 January 2020.
SEC, referring to the request of its board for an extension of the offer period on the rights issue dated 17th December 2019, stated that it had granted 10 working days extension from the closing date of the offer.
C & I Leasing, through its Managing Director, Andrew Otike-Odibi, had explained that non-shareholders of the company could partake in its ongoing N3.2 billion rights issue.
He added that the capital raised from the rights issue would be used to refinance some of the company’s debts while the rest would be used for expansion into the marine business as the company seeks to invest heavily in this sector.
“Part of the proceeds from the rights issue will be to refinance some of our debts and the rest of it will be for business expansion. We’ve invested heavily in the marine business and will continue in these investments because of the opportunities in that area so part of that money will go into growth in the marine business where we will buy new vessels,” Andrew Otike-Odibi said.
Meanwhile, the C&I Leasing rights issue does not only offer better pricing but is also rewarding in terms of the number of shares that existing shareholders are getting.
Subscribing to the C&I Leasing rights offer will entail that a shareholder will pay N24 for 4 additional shares that are worth N29.2 in the market, which is a gain of N1.3 per share. It means the C&I Leasing Rights Offer makes more economic sense.
C&I Leasing Plc is listed on the Nigerian Stock Exchange and engages in the business of fleet management, auto distribution, and marine rental/leasing. The company also offers escort services, fire-fighting services, pollution control services, mooring support services, recruitment/HR consultancy services, among others. It was incorporated in December 1990 and listed on the NSE in December 1997.