Red Star Express Plc has successfully raised N1.347 billion from existing shareholders through the rights issue of 336,855,291 shares of 50 kobo each. The rights issue was made at N4 per share on the basis of four new shares for every seven shares already held.
The offer was made late last year and according to the Nigerian Stock Exchange (NSE), the issue was 100 per cent successful. Consequently, the NSE said, it had listed additional 336,855,291 ordinary shares of the company.
“With this listing of the additional 336,855,291 ordinary shares, the total issued and fully paid up shares of Redstar Express Plc has now increased from 589,496,760 to 926,352,051 ordinary shares of N0.50 each
The company had said the purpose of the exercise was to raise additional capital to finance the expansion of its 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, Mr. Sola Obabori, had said the additional capital was to accentuate the growth potential already put in place by the company’s management.
He said:“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.
According to him, the company had a promise to keep towards our shareholders, which was 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,” he said.