ABC Transport obtains approval to raise N6.5 billion in fresh capital

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 approves N6.5 billion proposal

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.

• “That the Company raise additional capital of N6.5 billion through rights issue and bond issuance, subject to the approval of the shareholders at the Company’s Annual General Meeting,” the board’s resolution stated.

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.

Group financing obligations total N1.48 billion

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.

• Current loans and borrowings stood at N663.13 million, while non-current loans and borrowings amounted to N540.80 million.
• Bank overdrafts totalled N130.00 million, while lease liabilities amounted to N150.77 million, comprising current and non-current obligations.
• The parent company separately reported loans and borrowings of N927.56 million, which are included within the group figure.

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 profit rises 4.9%

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.

• Group revenue increased 7.0% to N8.27 billion, while profit before tax declined 9.4% to N665.60 million.
• Profit after tax rose 4.9% to N488.52 million, supported by a lower tax charge despite pressure on operating profitability.
• Nairametrics reported on December 2, 2020 that shareholders approved a proposed N1.4 billion capital raise.
• Shareholders also approved an increase in authorised share capital from N1 billion to N2.5 billion through the creation of three billion additional ordinary shares of 50 kobo each.

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.