Red Star Express seeks N1.3bn capital raise through rights issue
Adesola Afolabi was a businessamlive reporter and Head of Financial desk.
Redstar Express Plc., a courier and logistics company listed on the Nigeria Stock Exchange (NSE) has announced intentions to raise an additional N13.26 billion through a rights issue.
In a notice released by the Nigerian Stock Exchange, nd signed by Lilian Dako, head listing and regulations department, Red Star Express said the application for the rights issue had commenced, as its stockbroker, APT Securities and Funds Limited has submitted an application to the Nigerian Stock Exchange for approval.
The courier firm is planning the listing of a Two Hundred and Ninety-Four Million, Seven Hundred and Forty-Eight Thousand, Three Hundred and Eighty (294,748,380) ordinary shares of Fifty Kobo (N0.50) each at Four Naira Fifty Kobo (N4.50) per share, on the basis of one (1) new share for every two (2) ordinary shares held.
Data from thd NSE indicates Redstar express has 589,496,760 shares outstanding. The right issue at the ratio of 1:2 will increase the companies outstanding shares to 884,245,140 ordinary shares of fifty kobo.
The qualification date for the rights issue, according to the company is from Wednesday, 21 August 2019.