Red Star Express Plc has announced plan to raise fresh capital by way of rights issue.
The offer, which opened on Monday 11th November 2019, is aimed issuing 336,855,291 ordinary shares of 50 Kobo each at N4 on the basis of four new ordinary shares for every seven shares held as at August 2019.
According to a statement from the company, the purpose of the exercise was to raise additional capital to finance the expansion of the company’s current operations, the deployment of modern technology and improvement of its working capital.
Speaking on the rights issue, the Group Managing Director of Red Star Express Plc, Dr Sola Obabori, disclosed that the additional capital was to accentuate the growth potentials already put in place by the company’s management.
“This move underlines our ambition to maintain the expansion activities undertaken in the last few years.
“After opening international offices in Niger Republic, Burkina Faso and Benin Republic, we have established new business lines in the Agricultural and Technological sectors of the economy.
“This right issue represents the next logical step in this regard,” he stated.
“We have a promise to keep towards our shareholders; which is to continue providing superior returns on their investment in our business.
“With this additional capital, we will be able to ensure considerable growth of the company; making it more profitable and in a position to continue fulfilling that promise (of providing superior returns),” he added.