CMC-Connect set to shore up capital base through private placement
Nigeria’s Public Relations consulting agency, CMC Connect could be heading to the private placement market before the end of the year. The agency’s CEO Yomi Badejo-Okusanya told MARKETING EDGE that the company needs new funds to drive some of the projects that have been planned for 2017.
In recent time, CMC Connect has been investing in building new capacities, especially in the area of digital and creativity. But in 2017, the agency plans an even more robust investment as it seeks to drive differentiation and position itself as a thought leader in the industry.
“If we really want to be truly ahead, it may be difficult for just one person to own an agency, we may have to bring a pool of resources together,” the agency boss said in an exclusive interview with MARKETING EDGE.
“We looked at our plans for this year and we realised that we need to recapitalize our business by a significant amount of money. So one of the things we are doing this years is we may be doing private placement.”
This is not the first time the agency has contemplated raising equity through private placement. A couple of years back, the company actually called for private placement, but had to pull the plug on the transaction due to the economic turbulence in the system then.
“We needed to step it down. Nobody knew where we were going. We were working for a loan in foreign exchange to invest in the company, and thank God that we didn’t get it. If we had taken that loan when the exchange rate for a dollar was N165, now we would have had to repay back at N500 exchange rate. We would have been sweating by now.” Badejo-Okusanya said.
Though complete calm is yet to return to the economy, Badejo-Okusanya is however confident that the time is right to make such move because the economy has bottomed out.
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