Julius Berger Nigeria plc, Nigeria’s largest construction company, plans to raise N7.5 billion in new capital as it seeks to boost operations in Africa’s largest economy.

The company has authorised the directors “to raise additional capital of up to N7,500,000,000, through the issuance of any form of debt and/or equity instrument(s),” it said in a statement.

The capital may be raised through a public offering, private placement, rights issue or any other methods deemed fit.

The directors have also been authorised to issue up to 150,000,000 (One hundred and fifty million) ordinary shares of 50 kobo each in the authorised share capital of the company to identified investor(s), by way of a special placement, at a price per share to be determined on the basis of the volume weighted average closing price, over the 90-day period preceding the date the company obtains approval from the Securities and Exchange Commission (SEC).

For the year ended December 2013, Julius Berger grew gross revenues by 5.54 percent year-on-year to N212.73 billion from N201.56 billion in the same period of the prior year (FY12).

Profit before tax in the period spiked by 31.43 percent y/y to N16.22 billion as against N12.34 billion, as of FY2012. Due to increased tax payment that doubled in the prior year, profit after tax reduced by 2 percent y/y to N7.85 billion in 2013, from N8.0 billion in 2012.

Julius Berger closed trading up 4.98 percent at N71.91/ per share on Monday, May 12, 2014. The stock is up 45.87 percent in the past year.

Source: Businessday (by Patrick Atuanya)