Vitafoam Nigeria Plc, one of Nigeria’s leading foam and bedding manufacturers, has moved to strengthen its capital base and reward shareholders by proposing a significant increase in its issued share capital to N750.51 million.
This proposal will be presented for approval at the company’s 64th Annual General Meeting (AGM) scheduled to take place in Lagos in March 2026.
What the Proposal Entails
In a formal notice filed with the Nigerian Exchange (NGX) and released to shareholders, Vitafoam disclosed that it is seeking approval to:
- Increase its issued share capital from N625.42 million to N750.51 million.
Achieve this by creating 250.17 million new ordinary shares of 50 kobo each, bringing the total number of issued shares to about 1.50 billion.
Ensure that the newly created shares rank pari passu with existing ordinary shares in all respects. The proposed capital increase is designed to align the company’s equity base with its current operational scale and strategic growth plans, particularly following a remarkable financial recovery in the 2025 financial year.
Bonus Share Issue: Shareholders to Benefit
As part of the same suite of resolutions, the company is also proposing a bonus share issue to existing shareholders:
- One new ordinary share for every five existing shares held as of the qualification date.
The bonus issue will involve 250.17 million ordinary shares, matching the number created under the capital increase.
These shares will be fully paid and rank pari passu with current shares, but will not qualify for dividend for the year ended September 30, 2025.
Shareholders on the company’s register at the close of business on February 6, 2026 will be eligible for the bonus allocation.
Corporate Governance and Regulatory Updates
To enact the capital increase and bonus share issuance, shareholders will also vote on amendments to the company’s Memorandum and Articles of Association to reflect the enlarged share capital structure.
Additionally, the board is seeking approval to implement all necessary steps to give effect to these resolutions, subject to regulatory clearances from appropriate authorities.
Strategic Implications
The proposed issuance of new shares and increase in capital comes on the heels of Vitafoam’s strong financial turnaround in the fiscal year ended September 30, 2025:
- A dramatic improvement in earnings driven by higher revenue and effective cost management sets the stage for enhanced shareholder value.
The company has positioned itself to pursue future growth and market expansion while rewarding investors without raising fresh external capital.
Why This Matters
This strategic capital restructuring reflects Vitafoam’s confidence in its operational momentum and long-term growth prospects.
Shareholders stand to benefit directly through the bonus issue and bolstered equity base, while the company moves to better position itself for future challenges and opportunities in Nigeria’s competitive manufacturing sector.
Image Credit: Nairametrics
Source: Nairametrics
