Trans-Nationwide Express (Tranex) Plc is offering its shareholders three new ordinary shares of 50 kobo each for every two ordinary shares held under a N238.6 million rights issue that opened on Monday.
Tranex is offering 298.23 million ordinary shares of 50 kobo each at 80 kobo per share, a kobo above its share price of 79 kobo at the Nigerian Stock Exchange (NSE). The offer, which opened on July 24, 2017, will close on August 30, 2017. The qualification date for the rights issue is Wednesday, January 25, 2017.
Tranex plans to raise about N238.58 million in new equity funds to build up long-term capital to take advantage of emerging opportunities.
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.
According to the company, it remains committed to continuous demonstration of total commitment to quality service, innovation, and professional integrity in all its activities.