LivingTrust Mortgage Bank Plc has applied for regulatory approval to raise N2.75 billion new equity capital from its shareholders as the mortgage fir seeks to build up its balance sheet for aggressive growth.
LivingTrust Mortgage Bank plans to float a rights issue of five billion ordinary shares of 50 kobo each at 55 kobo per share. The rights issue will be pre-allotted to shareholders as at October 26, 2021 on the basis of one new ordinary share for every share held.
Head, Listings Regulation Department, NGX Regulation, Godstime Iwenekhai confirmed the receipt of application for regulatory approval for the N2.75 billion capital raising.
LivingTrust Mortgage Bank is blazing the trails as the first company on the “growth board” to float a primary issue.
The NGX had earlier this year migrated LivingTrust and three other companies – Chellarams Plc, McNichols Plc and The Initiates Plc to a newly created board-growth board’, which allows small and medium companies with track records of stable operations, growth and minimum corporate governance to list their shares and raise capital through the capital market.
The new board is also expected to support the small and medium enterprises (SMEs) with direct access to capital and support services from the capital market. Nigeria Bureau of Statistics (NBS) indicates that SMEs account for nearly half of Gross Domestic Product (GDP) and more than three-quarters of employment. Besides reduction in costs of listing and compliance requirements, the NGX, in collaboration with various strategic business partners and value added service providers, will provide support services aimed at creating competitive edge for companies on the board. These support services include pre-listing diagnostics; institutional services such as audit services, financial advisory, legal advisory, corporate strategic advisory; investor relations; analyst coverage, corporate access and corporate governance and customised trainings.
For a company to be listed on the growth board, it must be a duly incorporated public limited liability company with at least two years of operations, audited financial statements in line with the International Financial Reporting Standards (IFRS) and must have grown its revenue by a minimum of 20 per cent cumulatively in its last two years of operations.
Also, companies to be listed on the growth board must undertake that their promoters or directors shall retain a minimum of 50 per cent of their shares for a minimum period of 12 months from date of their listing, and that the directors or promoters shall not directly or indirectly sell […]