ABC Transport Plc plans to raise N6.5 billion through a rights issue and bond issuance.
The company disclosed the fundraising proposal in an October 21, 2026 notice to the Nigerian Exchange Limited, following board approval on October 17.
The proposal remains subject to shareholders’ approval at its Annual General Meeting, while the company has yet to disclose whether proceeds will fund debt refinancing, expansion or other business needs.
ABC Transport’s board approved a combination of equity and debt financing but did not specify how the N6.5 billion would be divided between the two instruments.
The notice also provided no offer price, rights entitlement ratio, bond interest rate or repayment timetable.
Shareholders must approve the proposal before the company proceeds with the capital-raising exercise.
The proposed amount exceeds the group’s disclosed loans, overdrafts and lease liabilities by approximately N5.02 billion, although that comparison alone does not establish how management intends to deploy the funds.
ABC Transport has a total loans, overdrafts and lease liabilities of approximately N1.48 billion at June 30, 2026.
ABC Transport’s half-year accounts show group loans and borrowings of N1.20 billion at June 30, 2026.
Including separately disclosed overdrafts and lease liabilities brings the combined financing obligations to approximately N1.48 billion.
The company’s financial statement distinguishes conventional borrowings from other financing liabilities.
Group loan repayments of N1.68 billion exceeded new borrowings of N1.24 billion during the first half.
Nevertheless, current liabilities exceeded current assets by approximately N3.93 billion, providing additional context for the funding proposal.
These figures indicate existing financing and working-capital obligations, but ABC Transport’s notice does not confirm that the proposed raise is a refinancing transaction.
ABC Transport’s latest half-year accounts show revenue growth alongside a decline in profit before tax. The latest capital proposal also follows an earlier shareholder approval for fundraising through the capital market.
In a recent corporate development, Nairametrics reported on October 22, 2026 that Kabiru Yusuf resigned as a Non-Executive Director, effective September 30, ending his 20-year tenure on ABC Transport’s board.
