From N2.5m seed fund to N55bn valuation, here are 5 things to know about the VFD Group

With shares that started at N2 per share during the initial capital raise, VFD Group’s shares now priced at N244.88 per share VFD Group, a versatile and sector-agnostic proprietary investment firm, yesterday received official approval to list its shares on the Nigerian Exchange Limited (NGX), marking a significant milestone for the company. This strategic move allows VFD Group to tap into the capital market and gain enhanced visibility through its listing on Africa’s second-largest stock exchange.

The decision comes after months of meticulous planning and preparation, positioning VFD Group to gain enhanced visibility. The listing could significantly bolster the firm’s reputation by being part of a prominent stock exchange, where it can tap into capital from the investing public through public offerings or private placements.

As a result, the group is gearing up to raise a substantial N32.5 billion, a combination of equity and debt. Notably, N12.5 billion is earmarked for sourcing through the sale of shares to existing shareholders.

CEO Nonso Okpala expressed enthusiasm about the forthcoming listing, stating, “This listing will give us greater access to capital markets and will help us achieve our strategic goals for growth and expansion.”

Last week, VFD Group made a notable exit from the NASD OTC Securities Exchange, where its shares were traded over the counter for about 4 years. This exit marks a pivotal step towards listing on the Nigerian Exchange, reinforcing the firm’s commitment to providing its shareholders with new opportunities and enhanced visibility.

Babatunde Busari, Chairman of VFD’s Board of Directors, emphasized the significance of the NGX listing, stating, “Listing on the Nigerian Exchange Limited will increase our visibility and broaden our reach, allowing us to attract new investors and deepen relationships with our existing investors. We are excited about the opportunities ahead and remain committed to delivering value to our shareholders.”

VFD Group’s stellar performance is evident in its robust financials, with funds under management surging to N55.7 billion in the quarter ending June. The company’s financial report reveals a net profit of N3.5 billion for the period, a remarkable 16-fold increase compared to the preceding quarter.

5 things you should know about the VFD Group
VFD Group Plc has been building an industry-agnostic proprietary investment company with a portfolio of over 40 businesses across various sectors and geographies, creating innovative products and solutions for the African market, since 2009.

The group is renowned for its provision of investment management, wealth management, and financial advisory services. It also has a strong track record of delivering value to its clients and managing a diverse portfolio of assets that consistently generate returns for investors.

VFD started out with N2.5 million investment
The company started out with just N2.5 million in seed capital according to a Punch report. The money was mostly from the Founders who included Nonso Okpala, Gbenga Omolokun, Chukwuma Kalu, Niyi Adenubi etc.

From an initial seed capital of N2.5 million, the company has shown remarkable growth, with shares that started at N2 per share during the initial capital raise now priced at N368 per share in the Nigerian capital market. It boasts a market worth of N55 billion and investments in over 40 companies across multiple sectors.
In 2021, the Group was named the ‘2021 Most Innovative Investment Company in Nigeria’ by the International Finance Magazine (IFM). IFM, a business and finance magazine published in the United Kingdom, awarded VFD Group the International Finance Award in Dubai.

VFD Group owns VFD Microfinance Bank and once invested in Piggyvest
As an industry-agnostic company, the VFD Group owns companies across various sectors of the economy. One such company is the VFD Microfinance Bank, a digital MFB which operates its proprietary app, the VBank. The VBank burst into prominence during the COVID-19 lockdown when Nigerians were looking for contactless ways of banking.

Apart from VBank which is its proprietary fintech software, VFD group has also invested in the popular savings platform, Piggyvest. According to its CEO, the Group considers its investment in PiggyVest, a technology company, as one of its most exciting. The company sees it as a transformative investment that will redefine how fintech shapes the future of financial services.

More than a decade of growth
Since launching operations in the country 14 years ago, VFD Group Plc has not only survived the turmoil and shocks brought by COVID-19 and consecutive recessions, but has thrived, reinvented itself, expanded its portfolio, and gained global recognition and partnerships.

An industry-agnostic investment company
VFD Group transitioned from being solely focused on financial services to becoming an “industry-agnostic” proprietary investment company. According to Okpala, the decision to reinvent itself in 2018 was made to redefine the Group’s scope of investment from one that was focused on only financial services to general investment.

Speaking on the re-invention, Okpala says the “business continues to seek profitable investment for itself and its stakeholders, across different investment options and businesses, regardless of their situated industry.”

Diverse Investment interests
While initially concentrated in the financial services sector, the Group has diversified its investments into various sectors, including technology, exchanges (NGX and NASD), real estate, hospitality, digital media, power, oil and gas, asset leasing, arts, cinematography, and more.

Apart from the digital bank, the Group’s magic wand turned around Abbey Mortgage Bank and made Anchoria Asset Management more profitable with an alternative approach to investment. It also hugely enhanced real estate yield through HEREL, a hospitality company that fuses the hospitality business model and the real estate model, and Dynasty Real Estate, which has developed sold-out estates and properties within Lagos and Abuja.

About Author