Vitafoam Nigeria Plc has announced plans to increase its issued share capital to N750.5 million as part of a strategy to strengthen its capital base and reward shareholders through a bonus share issue.
The company disclosed this in a notice filed with the Nigerian Exchange ahead of its 64th Annual General Meeting scheduled to hold in March 2026 in Lagos.
According to the notice, shareholders will be asked to approve a special resolution authorising the increase of the company’s issued share capital from N625.42 million to N750.51 million through the creation of additional ordinary shares.
If approved, Vitafoam’s issued share capital will rise from about 1.25 billion ordinary shares to approximately 1.50 billion ordinary shares of 50 kobo each. The newly created shares will rank pari passu with existing ordinary shares.
Vitafoam explained that the proposed increase is intended to align its equity structure with the company’s current scale of operations while supporting the implementation of a bonus issue.
The company stated that the additional 250.17 million ordinary shares will be used entirely for a bonus issue to existing shareholders, without raising new funds from the capital market.
Under the proposal, shareholders will receive one new ordinary share for every five ordinary shares held, subject to regulatory approvals. The bonus issue will involve the allotment of 250.17 million ordinary shares, corresponding with the number of newly created shares.
The bonus shares will be fully paid and will rank equally with existing shares but will not qualify for dividends for the financial year ended September 30, 2025.
Shareholders whose names appear on the company’s register of members as of February 6, 2026, will be eligible to receive the bonus shares.
Vitafoam also disclosed that the bonus issue will be funded by capitalising N125.08 million from its retained earnings, reflecting an improvement in the company’s financial position.
Following the proposed increase, the company will seek shareholders’ approval to amend relevant provisions of its Memorandum and Articles of Association to reflect the enlarged share capital.
The development comes after Vitafoam recorded a strong financial turnaround in its 2025 full-year results following a challenging performance in the previous year.
For the financial year ended September 30, 2025, Vitafoam reported a profit before tax of N21.48 billion, representing a significant increase from N1.15 billion recorded in the prior year.
Profit after tax rose to N14.54 billion from N952 million in the 2024 financial year, driven by improved operational efficiency and cost management.
Revenue for the year grew by 35 percent to N111.38 billion, supported by increased demand for foam and bedding products and improved pricing strategies.
Basic earnings per share improved to N9.43, compared with a loss per share of 72 kobo in the previous year.
In addition to the proposed bonus issue, the board of Vitafoam has recommended a cash dividend of N3.00 per ordinary share, subject to shareholders’ approval at the AGM.
The company said the proposed capital restructuring, bonus issue, and dividend payment demonstrate its commitment to delivering long-term value to shareholders while positioning the business for sustainable growth.
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Vitafoam Nigeria Plc corporate headquarters
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Vitafoam Nigeria Plc plans to increase its share capital and issue bonus shares ahead of its 2026 AGM
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Vitafoam Nigeria, Nigerian Exchange, bonus issue, share capital increase, consumer goods sector, Nigerian stocks, AGM 2026
