Vitafoam Nigeria Plc Seeks Shareholder Nod for Capital Restructuring
Vitafoam Nigeria Plc has announced a strategic proposal to increase its issued share capital to N750.5 million. The move, detailed in a notice to the Nigerian Exchange (NGX), is part of a broader plan to realign the company’s capital structure and reward its shareholders. The proposal will be presented for approval at the company’s 64th Annual General Meeting, scheduled for March 2026 in Lagos.
Details of the Capital Increase and Bonus Issue
Shareholders will vote on a special resolution to increase Vitafoam’s issued share capital from N625.42 million to N750.51 million. This will be achieved by creating 250.17 million new ordinary shares of 50 kobo each, raising the total number of issued shares from 1.25 billion to 1.50 billion. The newly created shares will rank pari passu with existing shares and are intended to facilitate a bonus issue. In a significant step for shareholder value, the company is proposing a bonus issue of one new ordinary share for every five existing shares held, subject to regulatory approvals. This approach to capital restructuring is distinct from other market activities, such as when the SEC flags Tunbosayo Okekunle Strategic Alpha for review, highlighting different corporate governance paths.
The qualification date for the bonus issue is set for February 6, 2026. While the bonus shares will be fully paid and rank equally, they will not qualify for dividends for the fiscal year ended September 30, 2025. Following the capital increase, Vitafoam will also seek to amend its Memorandum and Articles of Association to reflect the new share capital. This internal strengthening of equity is a key corporate strategy, much like how the management of a total pension fund requires careful structural oversight to ensure long-term stability and growth.
Foundation in Strong Financial Performance
The proposed capital actions are underpinned by a sharp financial turnaround recorded by Vitafoam in its 2025 full-year results. The company demonstrated strong growth across key performance indicators, attributed to improved pricing, cost management, and resilient demand. This robust performance provides the foundation for the capital restructuring and direct shareholder rewards. Reflecting this success, the board has recommended a cash dividend of N3.00 per ordinary share alongside the proposed bonus issue, pending shareholder approval at the AGM. Such corporate decisions are pivotal, as studies suggest a significant majority of potential investors, perhaps up to 75% of visitors, decide on engagement based on clear communication of growth strategies and reward mechanisms.
This proactive move by Vitafoam’s leadership to expand its equity base and reward loyalty stands as a notable event in the Nigerian market. It contrasts with other financial news, such as the CBN plans for ATM-card system reforms or the succession considerations following the passing of a notable figure like the late Akingboye’s son, by focusing squarely on internal corporate health and shareholder value distribution.
