Capital Hotels Plc has crossed N10billion in market capitalisation on the Nigerian Exchange Limited (NGX) over its recently concluded 1,611,995,510 ordinary shares of 50 Kobo each per share offered through Private Placement to 22 Hospitality Limited.
The notification by the NGX during the weekend noted that the company with additional 1,611,995,510 listing ordinary shares, bring its total issued and fully paid up shares increase from 1,548,780,000 to 3,160,775,510 ordinary shares of 50 kobo each.
It means that the company’s stock price that closed transaction at N3.40 on Friday thrust its market capitalisation from N5.27billion when its paid up shares was at 1,548,780,000 to N10.75billion in market capitalisation.
The transaction had involved the issuance and purchase of new shares by 22 Hospitality Limited which resulted in a change in control, with the new investor holding 51percent of the issued and fully paid shares post transaction completion.
The capital raised from the transaction is meant to be utilised for the renovation of the hotel with 22 Hospitality Limited as the new majority investor.
Meristem Stockbrokers Limited had acted as the stockbroker for the transaction while Meristem Capital Limited acted as the issuing house(s)/financial adviser(s).
Capital Hotel’s premier and only hotel, the Sheraton Abuja Hotel, commenced business in January 1990. The hotel operates and maintains restaurants, apartments for letting, recreational facilities, night club and a business centre.
Capital Hotels also engages in the hotel business which includes the furnishing of hotels and the sale of accommodation; food and beverage in the ordinary course of business.
Its unaudited financial statement for the half year (H1) ended June 30, 2022 shows a turnover increase of 114 per cent N2.84billion as against N1.33billion in the same H1 period of 2021.
Capital Hotels, thus, reported a profit after tax of N22.5million in H1 2022 as against loss after tax of N234.91million in H1 2022.