RedStar Express issues new shares to boost capitalization

By Omobayo Azeez

Red Star Express Plc has issued fresh shares at the Nigerian Stock Exchange (NSE) to boost its capitalization in the equity market.

According to a corporate disclosure made by the management of the exchange on Friday, the new issue numbered 336,855,291 ordinary shares of 50 Kobo each at N4.00 per share on the basis of four new ordinary shares for every seven ordinary shares held.

With the new listing on the daily official list of the NSE, the company’s capitalization peaked at N3.029 billion as its share price equally soared by 9.73 per cent or N0.90 to close at N3.27 per share.

The NSE disclosure read, “Dealing members are hereby notified that additional 336,855,291 ordinary shares of Redstar Express Plc were today, Friday, 06 March 2020, listed on the daily official list of the Nigerian Stock Exchange.

“The additional shares listed on the exchange arose from Redstar Express Plc’s Rights Issue of 336,855,291 ordinary shares of N0.50 kobo each at N4.00 per share, on the basis of four (4) new ordinary shares for every seven (7) ordinary shares held as at 21 August 2019.”

The NSE stated further that issue was 100 per cent subscribed, adding that with this listings, “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 kobo each.”