McNichols Consolidated, an indigenous consumer food and beverage company, has resolved to undertake a rights issue for its shareholders amid a bullish run in the capital market.
In a statement released to the Nigerian Exchange Limited (NGX) after its board meeting on June 9, the firm promised to issue a bonus share for every 23 shares the company’s stakeholders hold.
The matter will be tabled before the shareholders during the company’s Annual General Meeting slated for July 28.
This comes after the firm offered to award six share bonuses for every five shares held by shareholders by the end of December 31, 2021.
The statement read: “McNichols will undertake a rights issue to existing shareholders on the basis of 17 shares for every 23 shares already held and thereafter cancel the balance shares not taken through the rights issue.
“Approval for the rights issue will be sought from shareholders at the Annual General Meeting of the Company holding on Thursday, 28th July, 2022.”
The rights issue is expected to increase McNichols’ share following the 166.2 percent growth in the value of the company’s stock.
McNichols share value rose from N0.77kobo to N2.05 kobo per share and had recorded a 52-week high of N2.34kobo.
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