Dipo Olowookere
By Dipo Olowookere
The proposed raising of fresh capital worth N1.33 billion by Red Star Express Plc has received regulatory approval, Business Post can authoritatively report.
Last month, Business Post reported that the leading logistics solution provider with offices in over 160 locations in Nigeria was planning to raise the above amount from its shareholders through rights issue at a date to be fixed by the board, subject to approval of the Nigerian Stock Exchange (NSE).
Over the weekend, Business Post confirmed that the approval from the NSE has been secured by the company and the exercise will commence at a date to be announced very soon by the board.
Our correspondent gathered that the regulatory approval was given on Thursday, August 26, 2019 after being satisfied with details provided by the company for the exercise.
Red Star Express is offering to its shareholders, through the rights issue, a total of 294.8 million ordinary shares at the rate of N4.50k per unit, with the qualification date fixed for Wednesday, August 21, 2019 and on the basis of one new ordinary share for every two shares.
According to the company, FBNQuest Merchant Bank Limited and Meristem Capital Limited are the issuing houses for the transaction, while the stockbrokers are APT Securities and Funds Limited, Cordros Securities Limited, FCSL Asset Management Limited, Mega Capital Financial Services Limited, PAC Securities Limited and APEL Asset Limited.
At the 2019 Annual General Meeting (AGM) of the firm held recently in Lagos, the Chairman, Mr Suleiman Barau, informed shareholders that the rights issue would be used to expand the company’s current operations, implement new growth opportunities already identified, and optimise its use of technology.
On his part, the CEO, Mr Peter Obabori, said the company was “expanding and diversifying the reach of our operations to other West African countries as we are also in Ghana which makes us confident that by the end of the financial year the company would generate higher revenue.”
