McNichols Consolidated Plc is currently seeking N265.5 million from existing shareholders through rights issue. The firm aims to increase its shares outstanding by additional 531,242,609 ordinary shares with a nominal value of N0.50 each at a price of 50 kobo per share on the basis of new seventeen (17) ordinary shares for existing twenty-three (23) new ordinary shares held as at 16 September 2022, the offer document reveals.

McNichols Plc stands as a home-grown fast-moving consumer goods brand within the food and beverage industry, dedicated to enriching the quality of life and contributing to the well-being of Nigerians.

McNichols specializes in the production and sale of food and beverage products. The Food Products segment encompasses custard products and offerings from the pancake house. The Beverages segment caters to sugar products, chocolate-flavored milk, tea, and various milk-based products. These goods are distributed through a network of reputable distributors across Nigeria.

Its share price closed at N0.50 per share on August 11 2023. The lead arranger to the offer is Futureview Financial Services Limited just as the offer will close on 31 August 2023.

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The new fund is being sought to procure a new cube plant, packaging equipment to meet the growing needs of customers, buy new distribution vehicles, depot and operating location expansion as well as improve working capital with a view to increasing our sales and profitability.

At half year 2023, revenue for the company stood at N549.19 million, a better performance than N422.28 million made in similar period in 2022. Notwithstanding, total comprehensive income was N20.13 million at half year 2023 in contrast to N20.40 million in the comparable period of 2022.

“Aligned with its overarching vision and as a crucial component of its strategic business funding initiative, McNichols Consolidated Plc is seeking to raise equity capital through this Rights Issue. The primary objective behind this capital infusion is to facilitate the expansion of its production capacity, ensuring the company can effectively address the demands of its markets while enhancing its distribution channels,” Futureview, the lead arranger to the offer, said in a note to investors.