By Dipo Olowookere
One of the major players in the transportation industry in Nigeria, ABC Transport Plc, is looking to raise fresh capital, about N394.5 million, from its shareholders.
The company is seeking funds from investors through the sale of shares of the organisation and this is by a rights issue.
Already, it has submitted an application to the Nigerian Exchange (NGX) Limited for approval to list when eventually issued to qualifying shareholders.
A notice from the exchange disclosed that the application was filed by the stockbroker of ABC Transport, FSL Securities Limited.
The firm intends to sell over a billion units of its equities at 35 kobo each on the basis of 68 new shares for every 100 shares held by investors, with the qualification date at November 30, 2021.
“Trading license holders are hereby notified that ABC Transport Plc has through its stockbroker, FSL Securities Limited, submitted an application to Nigerian Exchange Limited for the approval and listing of a rights issue of one billion, one hundred and twenty-seven million, two hundred and thirty-six thousand (1,127,236,000) ordinary shares of 50 Kobo each at 35 kobo per share, on the basis of 68 new ordinary shares for every 100 ordinary shares held.
“The qualification date for the rights issue was Tuesday, November 30, 2021,” the disclosure from the exchange stated.
ABC Transport, which commenced operation in road passenger transportation on February 13, 1993, as an off-shoot of Rapido Ventures, operates luxury bus services across the country and also outside the country.
The company has recorded remarkable achievements in the transportation sector, resulting in various awards, including the Best Transporter in Nigeria by the Chartered Institute of Transport, Nigeria.
In March 2003, Capital Alliance Private Equity (CAPE) acquired 30 per cent shares of ABC Transport, a deal which re-positioned the company for greater performance.
Business Post reports that last week, on the floor of the local exchange, the shares of ABC Transport appreciated week-on-week by 3.03 per cent to 34 kobo per unit as against the preceding week’s value of 33 kobo per unit.
