Subscription for eTranzact N7bn Rights Issue Begins
By Dipo Olowookere
Shareholders who intend to take their rights in the N7 billion rights issue of eTranzact International Plc have started doing so since Tuesday, July 14, 2020.
The exercise, according to the notable payments provider in Nigeria, is expected to come to an end on Monday, August 10, 2020.
During the rights issue, the company is offering for sale a total of 4,666,666,667 ordinary shares of 50 kobo each at N1.50 per share on the basis of 10 new ordinary shares for every nine ordinary shares held by shareholders as at March 25, 2020.
In a circular yesterday, the Head of Listings Regulation Department at the Nigerian Stock Exchange (NSE), Mr Godstime Iwenekhai, confirmed that the exercise has commenced.
According to him, the acceptance list for the rights issue opened on Tuesday, July 14, 2020, and should close on Monday, August 10, 2020.
“Further to our market bulletin of March 25, 2020, with reference number NSE/RD/LRD/MB22/20/03/25, dealing members are hereby notified that eTranzact International Plc’s rights issue of 4,666,666,667 ordinary shares of 50 kobo each, at N1.50 per share on the basis of 10 new ordinary shares for every nine ordinary shares held as at March 25, 2020, has opened for subscription,” the notice said.
Business Post reports that in March 2020, the electronic payment solutions provider submitted an application to the exchange through its stockbroker, Cordros Securities Limited, for an approval to list shares from the exercise on the trading platform.
eTranzact is raising the fresh capital through the exercise for the upgrade and enhancement of the company’s technology infrastructure and network security systems.
The N7 billion is expected to be used to purchase state-of-the-art infrastructure in order to retain the best skill set available, achieve a fast response rate, reduce downtime, and expands its service offerings and market reach.
According to the Managing Director/CEO of eTranzact, Mr Niyi Toluwalope, the funds would enable the company’s management to strategically maintain its leading position as a key market leader within the electronic payment industry.
At about this time last year, eTranzact returned to profitability after it earned a net profit of N96.1 million at the end of the second quarter of 2019 ended June 30, 2019, overturning the N200.8 million loss it accrued in the second quarter of 2018.