Economy
Red Star Express Seeks Funds for New Warehouses, Trucks, Others
By Adedapo Adesanya
Top courier and logistic service provider, Red Star Express Plc, has revealed that it intends to use proceeds from the sale of 336,855,291 units of the company’s shares through rights issue for expansion of its operations.
Addressing the investing public, including Business Post on Thursday at the Nigerian Stock Exchange (NSE), Red Star Express said the four major things funds from the exercise would be used for include provision of trucks; development of warehouse facilities at Lagos-Ibadan Expressway and the Murtala Muhammed International Airport in Lagos; deployment of more improved technology; working capital of the company.
The Group Managing Director of Red Star Express Plc, Mr Sola Obabori, while speaking yesterday at the company’s Facts Behind the Figures at the stock exchange, noted that the company has seen a lot of growth in the past five years, adding that measures have been put in place to ensure further development so as to create more value to shareholders.
He said, with the expected net issue proceeds of N1.3 billion from the rights issue, the company will within 18 months develop its warehouse facilities to create a better storage of its customers’ cargos and goods, purchase more trucks to improve logistics, and put in place ICT resources among others.
“We are going to develop warehouse facilities at Lagos-Ibadan Expressway and Murtala Muhammed International Airport Cargo terminal. Spaces are already jampacked and we need to expand.
“Approval has been given by the Federal Airport Authority of Nigeria (FAAN) and this will cover 54 percent of the total money and this is about N704 million and is expected to be completed in 18 months,” the GMD said.
Mr Obabori further said, “We are also developing a 9000 square kilometer space for warehouse development along Lagos-Ibadan Expressway.”
“We will be buying additional trucks to drive the logistics part of our business,” the GMD stated, noting that capital to be raise for this purpose would be N201.6 million (15 percent of the rights issue) and should be purchased under three months.
He stressed that 12 percent of the proceeds, amounting to N154.3 million, would be used for Information and Communication Technology solutions and Enterprise Resource Planning (ERP), which he said would support the firm for better decision-making methods. He said this should be within 18 months.
According to him, the remaining 19 percent (250 million of the proceeds) would then be deployed for the working capital of across board with immediate effect.
Speaking on the company’s financial performance, Mr Obabori noted that the company’s revenue has grown by 20 percent from N8.4 billion recorded in 2018 to over N10 billion in 2019.
“This occurred as a result of our consistent increase in revenue drive, through increase in customer base, innovation, and investments in assets,” he explained.
He added that the 5-year revenue overview would do well to attract investor confidence, noting that the group, “has constantly increased revenue for the 5-year period by 51 percent from N6.6 billion in 2015 to N10.0 billion in 2019.”
He further said that subsidiaries of the company, which include Red Star Logistics and Red Star Support Services Limited, have contributed between 42 percent and 48 percent in the last five years and expressed optimism that with the rights issues, the numbers will only increase.
Seeking to further boost investors’ confidence, Mr Obabori said, “The group has always maintained an upward trend in our dividend payment over the last 5 years, with the highest record of 43 Kobo in full year 2019.”
Mr Obabori added that, “When we are done with this rights issues, it will be N3.7 billion, assuming all provisionally allotted ordinary shares are fully taken up on completion of the right issues.”
The company’s market capitalization pre-issue stood at N2.36 billion. It was stated that shareholders who do not accept their allotment in full may have their shareholding in the company diluted.
Looking ahead, Red Star Express Plc has projected a revenue increase of N12.6 billion and N1.4 billion increase in Profit Before Tax and constant increases in the company that will see its revenue reach N18.9 billion in 2025.
Business Post reports that the company’s share price, as at the time of this report on Friday, was trading at N4.45 per share on the floor of the Nigerian stock exchange.
Red Star Express Plc provides a portfolio of logistics solutions which include, but not limited to International and Domestic delivery, Freight Forwarding, Information and Document Management, Mail Management, Warehousing, and E-Commerce Solutions.
By Adedapo Adesanya
Oil was up more than 3 per cent on Tuesday as renewed Iranian attacks on the United Arab Emirates (UAE) heightened concerns about the worsening outlook for global supply.
Brent crude futures appreciated by $3.21 or 3.2 per cent to $103.42 a barrel, while the US West Texas Intermediate (WTI) crude futures gained $2.71 or 2.9 per cent to trade at $96.21 per barrel.
Prices had fallen previously after some vessels sailed through the critical Strait of Hormuz, a vital gateway for about 20 per cent of the world’s oil and liquefied natural gas trade
The Iran war shows no signs of abating as it renewed attacks on the United Arab Emirates (UAE) on Tuesday, causing oil loading at the port of Fujairah to be at least partly halted after the third attack in four days ignited a fire at the export terminal.
Fujairah, located on the Gulf of Oman just outside the Strait of Hormuz, is a critical exit point for oil volumes equivalent to roughly 1 per cent of global demand.
The attacks on oil installations by Iran and the ongoing disruption to shipping through the Strait of Hormuz have traders worried for long-term impairment to supply that could keep prices elevated.
The effective closure of the strait has forced the UAE, which is the third-largest producer in the Organisation of the Petroleum Exporting Countries (OPEC), to reduce its output by more than half.
Several allies of the US rebuffed President Donald Trump’s call on Monday to send warships to escort shipping through the strait.
On Tuesday, French President Emmanuel Macron said France would never take part in operations to unblock the strait, and would only participate in a coalition that could provide freedom of navigation once hostilities ended.
Meanwhile, the Trump administration reiterated its position that they see the Iran conflict lasting weeks, not months.
The head of the International Energy Agency (IEA), Mr Fatih Birol, has suggested member countries could release more oil, in addition to the 400 million barrels they have already agreed to draw from strategic reserves.
By Adedapo Adesanya
A 10 per cent equity stake has been acquired by Odu’a Investment Company Limited in a subsidiary of FCMB Group Plc, FCMB Pensions Limited.
The move is aimed at strengthening its presence in Nigeria’s growing pension industry.
The company disclosed that the transaction was completed after receiving all required regulatory approvals from the National Pension Commission (PenCom) and the Central Bank of Nigeria (CBN), while the Securities and Exchange Commission (SEC) has also been duly notified.
Odu’a Investment said the acquisition represents a strategic investment in a resilient and steadily expanding segment of Nigeria’s financial services sector.
The company added that the deal also reinforces FCMB Pensions’ shareholder base through the entry of a long-term institutional investor.
Chairman of Odu’a Investment Company Limited, Mr Bimbo Ashiru, said the investment aligns with the organisation’s strategy of partnering with strong institutions operating in sectors critical to Nigeria’s long-term economic stability.
“This investment reflects Odu’a’s strategy of partnering with strong institutions operating in sectors that are central to Nigeria’s long-term economic stability and growth,” he said in a statement.
“The pension industry plays a critical role in mobilising long-term savings and strengthening the financial system. FCMB Pensions has built a solid platform serving contributors across Nigeria, and we see a significant opportunity to support its continued growth and impact,” he added.
Also commenting on the transaction, the Managing Director of Odu’a Investment Company Limited, Mr Abdulrahman Yinusa, described the deal as a vote of confidence in FCMB Pensions’ leadership and long-term prospects.
“Our partnership with FCMB Group Plc reflects confidence in FCMB Pensions’ strategy, leadership, and long-term potential. Together, we will work to expand its reach, support its strategic objectives, and deliver sustained value to contributors and other stakeholders,” Mr Yinusa said.
The investment brings together two established institutions with complementary strengths and a shared focus on long-term value creation. According to the company, the partnership positions FCMB Pensions to deepen market penetration and enhance service delivery within Nigeria’s contributory pension scheme.
Odu’a Investment Company Limited is an investment holding company jointly owned by the governments of the six South-West states of Nigeria.
The firm manages a diversified portfolio spanning real estate, financial services, hospitality, agriculture, and industrial investments, with a mandate to generate sustainable economic value and support regional development.
By Aduragbemi Omiyale
The chief executive of the Nigerian Exchange (NGX) Group Plc, Mr Temi Popoola, has said Nigeria’s capital market is undergoing a re-rating as global investors begin to reassess the country’s economic trajectory and investment potential.
“What we are seeing is a gradual re-rating of Nigeria. investors are beginning to look at the data more closely, the returns, the reforms, and the improving macroeconomic direction, and that is changing sentiment,” he said during a live interview on BBC Newsday in London.
He is in the United Kingdom as part of broader investor and stakeholder engagements during President Bola Tinubu’s state visit to Buckingham Palace.
Mr Popoola explained that Nigeria’s equity market has delivered strong returns in recent months, positioning it more competitively among emerging and frontier markets. According to him, this performance is helping to recalibrate long-held risk perceptions and attract renewed interest from international investors.
He added that improvements in Nigeria’s energy landscape, including increased domestic refining capacity and ongoing sector reforms, are helping to reduce the economy’s exposure to external oil price shocks, further strengthening investor confidence.
Mr Popoola emphasised that beyond short-term market movements, consistency in policy implementation will be critical in sustaining this shift in perception. “Global capital responds to clarity and consistency. As those elements become more evident, Nigeria naturally becomes more investable.”
He also highlighted the importance of sustained engagement with global financial centres, noting that platforms such as London play a key role in connecting Nigeria’s capital market to international pools of capital.
According to him, Nigeria’s evolving market structure, combined with ongoing reforms, is strengthening its position as a viable destination for long-term investment. “There is a broader recognition that Nigeria offers significant opportunities. The focus now is ensuring that this recognition translates into sustained capital flows.”
The NGX group chief concluded that Nigeria’s capital market is increasingly being viewed through a more balanced and data-driven lens, reflecting both its resilience and its long-term growth potential.
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