Bonus shares are issued free to existing shareholders when a company capitalises its reserves. This guide explains what is automatic, what might require action, the typical timeline, and what to do if your bonus shares do not arrive.
A bonus issue (also called a scrip issue or capitalisation issue) is when a company issues additional shares to existing shareholders at no cost, by converting retained earnings or reserves into share capital. If you hold shares in an NGX-listed company on the record date for a bonus issue, you are entitled to receive the bonus shares in proportion to your existing holding.
Ready to start investing in Nigerian stocks? Shares Saver registers your shares directly in your own name through SEC-regulated brokers.
For most NGX bonus issues, no action is required from the shareholder — the bonus shares are automatically credited to your CSCS account after the allotment date. Unlike a rights issue, there is no subscription payment and no acceptance form to complete. Your entitlement is calculated automatically from the CSCS register on the record date.
To receive bonus shares, you need an active CSCS Holder Number (CHN) linked to your investment account. If your CSCS account is dormant, your contact details are outdated, or your account has not been properly set up with a valid CHN, there may be delays or complications in receiving allotments. Ensure your CSCS account details — including your bank account for e-dividend purposes — are current.
Ready to start investing in Nigerian stocks? Shares Saver registers your shares directly in your own name through SEC-regulated brokers.
The typical sequence: (1) Company announces bonus issue and sets record date. (2) Trading continues — shareholders who hold on the record date qualify. (3) Register closes briefly for the record date. (4) Registrar calculates entitlements from CSCS records. (5) Company files returns with the Corporate Affairs Commission. (6) New shares are allotted and credited to CSCS accounts. The full process from announcement to CSCS credit typically takes several weeks. The company's offer circular or the registrar can provide the expected credit date.
First, confirm the expected allotment date from the company's announcement or registrar. If the date has passed and shares have not appeared in your CSCS account, contact the company's registrar directly with your CSCS account number and CHN. Your investment platform can also assist with tracing missing allotments.
Shares held directly in your own CSCS account — as with Shares Saver — ensure you are on the official shareholder register and eligible for every bonus issue automatically.
Important disclaimer
This article is for general information and educational purposes only. It does not constitute financial advice. Bonus issue procedures, timelines, and registrar requirements vary between companies and transactions. Always refer to the specific company announcement and registrar instructions. Shares Saver does not provide financial advice.
Create a free Shares Saver account and start buying Nigerian stocks directly in your name.