Vitafoam Nigeria Plc is seeking shareholders’ approval to increase its issued share capital to N750.5 million as part of a broader plan to realign its capital structure and reward investors following a strong financial rebound.
The proposal was disclosed in a notice filed with the Nigerian Exchange ahead of the company’s 64th Annual General Meeting, scheduled to hold in Lagos in March 2026.
Shareholders will be asked to vote on the capital increase, a bonus share issue, amendments to the company’s constitutional documents, and other statutory resolutions.
Under the proposal, Vitafoam plans to raise its issued share capital from N625.42 million to N750.51 million through the creation of 250.17 million additional ordinary shares of 50 kobo each.
Don’t Miss This: Africa’s largest hydropower project reshapes Ethiopia’s regional influence
If approved, the company’s total issued shares will increase from about 1.25 billion to approximately 1.50 billion ordinary shares, with the new shares ranking pari passu with existing ones.
The capital expansion is designed to support the issuance of bonus shares rather than raise fresh funds.
Vitafoam is proposing a bonus issue of one new ordinary share for every five shares currently held, subject to regulatory approvals.
A total of 250.17 million shares will be allotted under the scheme, funded through the capitalisation of N125.08 million from retained earnings.
Shareholders whose names appear on the company’s register as of February 6, 2026, will qualify for the bonus shares.
The company noted that the bonus shares will be fully paid and rank equally with existing shares, but will not qualify for dividends for the financial year ended September 30, 2025.
Following the proposed increase, Vitafoam will also seek approval to amend relevant clauses of its Memorandum and Articles of Association to reflect the enlarged share capital.
The move comes on the back of a sharp financial turnaround in the 2025 financial year. Vitafoam reported a surge in profitability, with profit before tax rising by about 1,775 per cent to N21.48 billion, compared with N1.15 billion in the previous year.
Profit after tax climbed by approximately 1,427 per cent to N14.54 billion, while revenue grew 35 per cent to N111.38 billion, driven by stronger sales and improved cost management.
On the strength of the improved performance, the board has also recommended a cash dividend of N3.00 per ordinary share, alongside the proposed bonus issue, both subject to shareholder approval at the AGM.
