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

ABC Transport Plc has received regulatory approval for a N6.5 billion fundraising initiative, combining rights issue and bond issuance, the company announced on October 21, 2026. The decision followed board approval on October 17, but shareholders must still ratify the measure at the upcoming Annual General Meeting. The funding source for the capital remains undetermined, with the company withholding details on whether the proceeds will be allocated towards debt refinancing, expansion, or other requirements.

The exact allocation between equity and debt financing was also not disclosed, leaving investors in the dark about the specific proportions of each instrument. The N6.5 billion capital raise surpasses the company's existing liabilities by roughly N5.02 billion, although this comparative figure does not reveal management's intended use for the funds.

At the end of June 2026, ABC Transport held total loans, overdrafts, and lease liabilities of about N1.48 billion, while half-year accounts revealed N1.20 billion in group loans and borrowings. Upon combining separately disclosed overdrafts and lease liabilities, the total financing commitments reached approximately N1.48 billion.

The company's financial statements differentiate conventional borrowings from other liabilities, but the notice does not confirm if the proposed capital raise is a refinancing exercise. The latest half-year accounts also revealed revenue growth and a decline in profit before tax. Furthermore, the capital proposal follows a prior shareholder approval for fundraising through the capital market.

Notably, Kabiru Yusuf, who had been a Non-Executive Director on the company's board for 20 years, resigned on September 30, 2026, effective immediately.