ABC Transport to raise 394.5 million naira from shareholders
By Dipo Olowookere
One of the major players in the transport industry in Nigeria, ABC Transport Plc, is seeking to raise new capital, approximately N394.5 million, from its shareholders.
The company seeks funds from investors through the sale of shares in the organization and through a rights issue.
Already, it has submitted an application to the Nigerian Exchange (NGX) Limited for listing approval when it is finally issued to qualified shareholders.
A stock exchange notice revealed that the request was filed by ABC Transport’s stock broker FSL Securities Limited.
The company intends to sell more than one billion units of its shares at 35 kobo each on the basis of 68 new shares for every 100 shares held by investors, with the qualification date of November 30, 2021.
“Business licensees are hereby informed that ABC Transport Plc has, through its brokerage firm, FSL Securities Limited, submitted an application to Nigerian Exchange Limited for the approval and listing of a rights issue of one billion one hundred and twenty-seven million two hundred and thirty-six thousand (1,127,236,000) ordinary shares of 50 Kobo each at 35 kobo per share, on the basis of 68 new ordinary shares for every 100 ordinary shares held .
“The qualifying date for the rights issue was Tuesday, November 30, 2021,” the stock exchange statement said.
ABC Transport, which began its road passenger transport business on February 13, 1993, as a subsidiary of Rapido Ventures, operates luxury bus services across the country and also overseas.
The company has recorded remarkable achievements in the transportation sector, earning it various awards, including the Best carrier in Nigeria by the Chartered Institute of Transport, Nigeria.
In March 2003, Capital Alliance Private Equity (CAPE) acquired 30 percent of the shares of ABC Transport, a transaction that repositioned the company for better performance.
Business post reports that last week, on the local exchange floor, shares of ABC Transport appreciated week-over-week by 3.03 percent to 34 kobo per unit from the week’s value previous 33 kobo per unit.