Vitafoam Nigeria Records Biggest Gain in 12 Weeks: Lagos MoverEmele Onu
Vitafoam Nigeria Plc, a foam-products manufacturer, posted its biggest gain in 12 weeks after announcing plans to raise capital for expansion.
The stock climbed 9.7 percent to 4.41 naira by the close of trading in Lagos, Nigeria’s commercial capital, the most since June 12. More than 1.2 million shares were traded, or 1.24 times the three-month daily average, according to data compiled by Bloomberg.
Vitafoam plans to raise as much as 4 billion naira ($24.5 million) by selling more shares to investors, a rights offer or special placement, Chairman Samuel Bolarinde told shareholders today in Lagos, without giving further details.
“Investors expect the expansion will increase income,” David Adonri, chief executive officer of Lagos-based Lambeth Trust and Investment Co., said by phone today.
Vitafoam’s profit for the nine months through June rose to 480 million naira from 398 million naira a year earlier, according to an Aug. 2 filling with the Nigerian Stock Exchange. Revenue rose to 13 billion naira from 11.2 billion naira.
The stock has gained 20 percent this year, compared with a 29 percent advance by the Nigerian Stock Exchange All-Share Index.