RED STAR TO RAISE ADDITIONAL CAPITAL
- Nov 13, 2019
- Red Star Express
Nigeria’s leading logistics provider, Red Star Express Plc, is in the stock market to raise fresh capital by way of Rights Issue to existing shareholders. The offer, which opened on Monday 11th November 2019, is aimed at a Rights Issue of 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 purpose of this exercise is 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 is 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.
FBN Quest Merchant Bank Limited is the lead issuing house for the Rights Issue while Meristem Capital Limited is involved as the joint issuing house.
Red Star Express Plc is a Licensee of Federal Express (FedEx) Corporation, the world’s largest delivery solutions provider. The company has over 150 offices nationwide, with a network reach spanning over 1,500 communities in Nigeria and over 200 countries worldwide. It is made up of 4 subsidiaries specializing in areas such as Express Delivery, Logistics, Freight, Outsourcing services, Supply Chain Management, E-Commerce Logistics Solutions, Printing and Packaging, E-Archiving, Business Enterprise Solutions, as well as Agro Logistics and Trade.