By Peter Egwuatu
RED Star Express Plc is in the stock market to raise N1.3 billion fresh capital by way of rights issue to existing shareholders.
The company is offering 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. The offer opened on Monday, November 11, 2019.
Speaking on the rights issue at the Nigerian Stock Exchange, NSE, weekend, the Group Managing Director of Red Star Express Plc, Dr. Sola Obabori, disclosed that the additional capital is to accentuate the growth potentials already put in place.
He said the additional capital would be deployed to finance the expansion of the company’s current operations, the deployment of modern technology and improvement of its working capital.
“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.
“With this additional capital, we will be able to ensure considerable growth in the company, making it more profitable and in a position to continue fulfilling the promise of providing superior returns,” he added.