C & I Leasing Plc has received the approval of the Nigerian Stock Exchange (NSE) to embark on a share reconstruction plan that will enable the company “have enough unissued shares to accommodate future plans to raise capital through the equity capital market.”
The company disclosed this in a regulatory filing at the NSE addressed to dealing members, shareholders, stakeholders and the general public.
According to the leasing firm, the share reconstruction will see a reduction in its issued and paid-up share capital from N808,505,000 being 1,617,010,000 ordinary shares of 50 kobo each to N202,126,250 being 404,252,500 ordinary shares of 50 kobo each.
The reconstruction will consolidate every four ordinary shares currently held into one new share in the company, the notice from the company explained, adding that the share capital so reduced will be added to the company’s share premium account.
The additional capital, it said, “will be used to finance the company’s expansion plan, extinguish some liabilities and enhance the company’s capital mix.
The company set the qualification date for the share consolidation at Wednesday 12th December 2018 while the shares of the company will be placed on suspension from Thursday 13th December 2018 to Thursday 27th December 2018 to allow for the consolidation exercise.