By Dipo Olowookere
The board of directors of Red Star Express Plc has revised both the volume and value of shares it is offering for sale in the proposed rights issue of the company.
In an earlier disclosure, Red Star Express had announced the sale of 294,748,380 ordinary shares of 50 Kobo each at N4.50 each on the basis of one new ordinary share for every two ordinary shares held as at August 21, 2019.
But on Thursday, the Nigerian Stock Exchange (NSE) announced the revised terms to the proposed rights issue approved by the Securities and Exchange Commission (SEC).
Red Star Express is now offering for sale 336,855,291 ordinary shares of 50 Kobo each at N4 per unit on the basis of four new ordinary shares for every seven ordinary shares held as at the close of business on August 21, 2019.
According to the circular from NSE, application for the rights issue opens Monday, November 11, 2019 and closes Wednesday, December 18, 2019, with the qualification date still intact.
Red Star Express is a world leading courier and package delivery company in Nigeria and also a licensee of FedEx in the country. The leading logistics solution provider has offices in over 160 locations in Nigeria.
Business Post reports that as at the close of transactions on Thursday, October 31, 2019, shares of Red Star Express were selling at N4.50 per unit, the same price it was sold the previous session.
The company, listed on the services sector and Courier/Freight/Delivery sub-sector of the main board of the NSE, has sahres outstanding of 589,496,760 units and a market capitalisation of N2.623 billion.
