Vitafoam Nigeria Plc, a leading Nigerian foam and bedding products manufacturer, is seeking shareholder approval to increase its issued share capital to N750.5 million from N625.4 million, alongside issuing bonus shares to reward investors following a remarkable financial turnaround. The proposal, detailed in a notice to the Nigerian Exchange (NGX), will be voted on at the company’s 64th Annual General Meeting scheduled for March 2026 in Lagos.
Okay News reports that the capital increase involves creating 250.17 million new ordinary shares, which will enable a bonus issue of one new share for every five existing shares held. This bonus issuance, funded by capitalizing N125.08 million from retained earnings, is a direct reward to shareholders whose names were on the register as of February 6, 2026, and follows a year of exceptional performance where the company’s profit before tax surged by approximately 1,775%.
The move comes on the heels of Vitafoam’s outstanding 2025 financial results, which saw profit after tax climb to N14.54 billion from N952 million in the prior year, with revenue growing 35% to N111.38 billion. The board has also recommended a cash dividend of N3.00 per ordinary share, complementing the bonus issue and reflecting strong confidence in the company’s sustained profitability and cash generation capabilities.
This strategic capital restructuring aims to strengthen Vitafoam’s equity base to better align with its current operational scale and future growth ambitions. By increasing its share capital and rewarding shareholders through both bonus shares and dividends, the company is positioning itself for enhanced market valuation and continued resilience in Nigeria’s competitive manufacturing sector.
