Tranex N238.6m Rights Issue Records 90.5% Subscription

Tranex N238.6m Rights Issue Records 90.5% Subscription

By Tunde Osho

Trans-Nationwide Express (Tranex) Plc has secured N216 million new equity funds from its existing shareholders, about N23 million below the initial target of N238.6 million.

Shareholders subscribed to 270.03 million ordinary shares of 50 kobo each at 80 kobo per share. Tranex had offered three new ordinary shares of 50 kobo each for every two ordinary shares held under a N238.6 million rights issue.

Tranex offered 298.23 million ordinary shares of 50 kobo each at 80 kobo per share. The qualification date for the rights issue was Wednesday, January 25, 2017.

The supplementary issue was aimed at building up long-term capital to put the company in a vantage position to take advantage of emerging opportunities.

Trans-Nationwide Express, Managing Director, Chidinma Iheme, said the net proceeds of the rights issue would be used to finance business expansion in order to set the company on a growth trajectory in the logistics sector.

“It will further enhance profitability and shareholders’ value,” Iheme said, urging shareholders to pick up their rights, noting that shareholders that have not received their rights circular should hasten to meet the registrars to the company.

Key extracts of the interim report and accounts of Tranex for the period ended June 30, 2017 showed top-down decline in the performance of the courier and logistics company. Turnover dropped from N421.9 million in first half 2016 to N356.6 million in first half 2017. Profit before tax slumped to N5.14 million in 2017 as against N38.7 million in 2016 while profit after tax dipped to N3.7 million in first half 2017 compared with N29.04 million in first half 2016.

Incorporated as TNT Skypak Nigeria Limited in March, 1984 as a private limited liability company, Tranex changed its name to Trans-Nationwide Express Plc and became a public limited liability company in September 1992.

With a share capital of N250 million and more than 3,600 shareholders, Tranex was listed on the Nigerian Stock Exchange in 1993. It is currently one of the only two logistics companies quoted on the Exchange.

The management of the company stated that its vision is to be recognised as an organisation that is synonymous with quality in all aspects of its business while it seeks to be a leader in the global express distribution industry in Nigeria by consistently exceeding the expectations of its customers and operating communities.

It also said the company remained committed to continuous demonstration of total commitment to quality service, innovation, and professional integrity in all its activities.

Tranex’s core values include integrity, customer satisfaction, innovation, team work and social responsibility.