The Lafarge Africa Plc rights issue which opened on Monday December 17, 2 018 and expected to run through till Wednesday January 23, 2019 is currently trading below its rights issue price of N12.00 per share by 5.42%, currently at N11.35 as at Monday January 07, 2019.
Market operators and stockbrokers are of the view that the Rights issue trading below its current market value has prevented significant interest in the Rights Offer. Thus, they are of the view that market participants will prefer to engage the secondary market to buy WAPCO stocks rather than buy the ongoing Rights Issue. According to Olusegun Atere, head of trading strategy at Apel Assets and Trust, “it would be difficult to see investors buy into WAPCO’s Rights at a premium. For that to happen forward earnings per share projections would have had to be very strong, but so far no such signals appear to be on the horizon.”
A quick look at the performance of the stock’s share price reflected that that has dropped by -8.84% since the company’s Rights Issue opened on December 17, 2017 as the market value was at N12.45k on the said date compared to N11.35k as at today.
How to participate
The Rights Offer is open to all existing shareholders of Lafarge Africa, and shareholders can invest in the new Offer through their respective stockbrokers . The Offer Opened on Monday 17 December, 2018 and closes on Wednesday 23 January, 2019. Proshare Nigeria Pvt. Ltd. Proshare Nigeria Pvt. Ltd. Proshare Nigeria Pvt. Ltd. Proshare Nigeria Pvt. Ltd. 13.Lafarge Africa Plc Q2 18 Results – Unchanged Rhetoric As Earnings Remain Depressed Proshare Nigeria Pvt. Ltd.