UPDC ups capitalization with fresh N16bn worth right issue

UACN Property Development Company Plc (UPDC) has raised fresh N15.962 billion from the capital markets through right issue as part of its recapitalisation and structuring efforts to boost its operation.

It acquainted the investing community and the general public with the development earlier this week at the Nigerian Stock Exchange (NSE) announced listing of additional 15,961,574,145 ordinary shares of the company.

“Dealing Members are hereby notified that additional 15,961,574,145 ordinary shares of UACN Property Development Company Plc (UPDC or the Company) were today, Tuesday, 2 June 2020 listed on the Daily Official List of The Nigerian Stock Exchange (The Exchange).

“The additional shares listed on The Exchange arose from the Company’s Rights Issue of 15,961,574,145 ordinary shares of 50 kobo each at N1.00 per share on the basis of 43 new ordinary shares for every 7 ordinary shares held as at 30 September 2019,” the NSE said.

It also noted that the right issue is 100 per cent subscribed.

With this listing of the additional ordinary shares, the total issued and fully paid up shares of UPDC has now increased from 2,598,395,791 to 18,559,969,936 ordinary shares of 50 kobo each.

Recall that UAC of Nigeria (UACN) Plc, which is the parent company of UPDC announced last year a collective consideration of strategic initiatives involving a recapitalisation and restructuring of UPDC.

UACN had explained that it was in the process of a strategic review, evaluating its performance and its subsidiaries.

The objective is to achieve sustainable positive financial performance from its existing operations and enable management focus on businesses that align with its strategy.

“In reviewing UPDC, the board weighed the long-term opportunities in the Nigerian real estate sector against the fundamental differences between the cashflow profile and capital needs of UPDC versus other entities in UAC’s portfolio.

“Following its review, the board concluded that it would be in the best interest of respective stakeholders of UACN and UPDC if UACN’s equity interest in UPDC is ‘unbundled’ such that UACN no longer holds any shares in UPDC and UPDC operates as a standalone legal entity, free to source appropriately structured capital,” it had said earlier.