eTranzact International Plc, an electronic payment solutions provider, is to raise about N7 billion fresh funds from existing shareholders via a rights issue. The money would be raised through the issuance of 4,666,666,667 shares of 50 kobo each at N1.50 per share in a ratio of 10 new shares for every nine shares already held.
In notification wednesday, the Nigerian Stock Exchange (NSE) said stockbrokers to the eTranzact, Cordros Securities Limited, had submitted an application for the approval and listing of the right issue.
Shareholders of the company had last year given approval to the board of directors to raise additional capital to boost its operations.
Chairman of eTranzact, Mr. Wole Abegunde had said the decision to raise additional capital became imperative considering the need of the company to expand its operations, deepen its market share and to remain competitive in the financial technology industry.
According to Abegunde, the capital to be raised will be used to upgrade and enhance the company’s technology infrastructure and network security systems and also to improve on its service delivery. He further stated that the company will also invest in its agent network expansion programme, human resources and employee development.
Also, speaking the Managing Director/CEO of eTranzact, Mr. Niyi Toluwalope, said that the injection of additional equity would enable the company’s management to strategically maintain its leading position as a key market leader within the electronic payment industry.
He disclosed that the company would acquire state-of-the-art infrastructure, ensure that it retains the best skill set available, achieve a fast response rate, reduce downtime, and expands its service offerings and market reach.