As part of efforts to increase its capital base, Red Star Express has revealed plan to float rights issue for its existing customers.
The company added that the rights would be issued on the basis of one new ordinary share for every two ordinary shares held.
The Chairman, Red Star Express, Suleiman Barau, who disclosed this during the company’s 2019 Annual General Meeting in Lagos recently, noted that the purpose of the rights issue was to enable the company expand its current operations, implement new growth opportunities already identified, and optimise its use of technology.
According to him, the company’s commitment to its shareholders and stakeholders would be enhanced and their interest prioritised.
The Chairman explained, “A pleasant economy is a major factor for greater development as a country and company.
“We have remained dedicated in our policies of ensuring the social and economic welfare of its stakeholders are preserved and sustained through the Red Star Foundation.
“This has also led to us analysing the operations of the foundation and expanding it into other areas.”
Meanwhile, the Chief Executive Officer, Peter Obabori, on his part, expressed that the firm would ensure despite the social economic and infrastructural challenges the economy of the country goes through, it would work towards enhancing its operations so as to continue meeting its goals of generating more capital whilst providing more wealth to its stakeholders and shareholders.
Obabori added, “We are 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.”