By Peter Egwuatu
MORISON Industries Plc has recorded over-subscription of 1.12 million shares in its Right Issue following the shares’ allotment result released last week.
Consequently, the company successfully raised N502.2 million in new equity funds, thus providing it with the much needed boost to reposition its operations.
Morison Industries had late last year launched a new capital raising for about N502.2 million in new equity funds through new share sale to existing shareholders. Morison Industries 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.
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 as shareholders took up their Rights and demanded for additional shares. As against 836.98 million shares placed on offer, shareholders placed orders for 838.11 million ordinary shares.
Chief Operating Officer, GTI Capital, Mr. Kehinde Hassan, said the success of the Rights Issue has further confirmed GTI Capital’s pedigree of packaging companies to raise capital, irrespective of the macroeconomic and market conditions.
According to him, GTI Capital worked with the directors and management of Morison Industries to convince shareholders on the prospects of the 63 year old healthcare 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.
Managing Director, Morison Industries Plc, Mr. Nwabueze Oputa, said the new equity funds would be deployed to improve working capital and finance the restructuring of the company.
He noted that with the new equity funds, shareholders can be well assured of a new era of growth for Morison Industries adding that the directors of the company will work with all stakeholders to achieve its growth targets.