VFD Group Plc will listing its shares on the Nigerian Alternate Restricted (NGX) this Friday. The corporate’s Group Managing Director/CEO, Nonso Okpala, spoke solely to TechCabal on the pondering behind the transfer.
After securing regulatory approval, VFD Group Plc, a Lagos-based funding agency, will formally listing its shares on the Nigerian Alternate Restricted (NGX). In line with notes in its 2022 financial statements, VFD Group Plc first thought-about an NGX itemizing over a yr in the past; on the finish of September, the corporate was delisted from the NASD Over-the-Counter (OTC) Securities Exchange.
Nonso Okpala, the corporate’s Group Managing Director/CEO, informed TechCabal that VFD was all the time ready to listing on a inventory change from its creation 14 years in the past. The corporate was began by 35 buddies and associates who raised N2.4 million. “Once you deliver 35 folks collectively, you want a stage of governance that prices greater than the preliminary funding. From the get-go, the core of our enterprise is broad-based shareholding and the need of utilizing governance. So we’ve got all the time identified we’ll get listed at a inventory change,” Okpala stated.
VFD’s method to investing focuses on long-term profitability and fundamentals. “We by no means play a valuation sport, so we’re by no means on to the most popular factor,” stated Okpala. “We have a look at companies which can be targeted on serving the wants of their sector. It’s extra concerning the sustainability of the companies. We don’t need them to develop too quick however at their very own tempo.”
“As an funding firm, entry to long-term and collaborative partnerships and visibility inside the funding neighborhood is most vital for us. The NGX is the one platform that you are able to do that in Nigeria,” stated Okpala.
In February 2022, VFD acquired a 5.2% stake within the NGX. Different portfolio firms embrace VBank, VerifyMe, and Piggyvest, the place it holds a 12% stake. “Our enterprise mannequin is a long-term relationship with the companies we put money into. For those who put it in relationship phrases, it is sort of a marriage. Within the conditions the place divorces occur—we name them divestment—we generate income regardless. We don’t search for exits. The cash we’ve got invested is a long-term funding to the success of the enterprise,” he added.
A requirement for long-term investing is affected person capital. “One key benefit about getting listed is having access to extra funding and finishing up funding in numerous sectors, particularly these you might be precluded from as a non-listed firm,” stated Okpala.
VFD’s funds below administration at present stand at N55.7 billion. Whereas the corporate declined to offer estimates and projections, it expects that determine to extend within the quick to medium time period following its itemizing. In line with its half-year 2023 monetary statements, VFD posted a profit-after-tax of N3.7 billion. The corporate introduced plans to lift N32.5 billion through fairness and debt in July after shareholders ratified the transfer.
Within the final decade, there was an intentional effort to woo firms to listing on the NGX; telco giants MTN and Airtel are at present listed. Regardless of this, the sense is that the NGX nonetheless has some technique to go earlier than it turns into the change of first selection for mature firms working in Nigeria.