Yo my people, make una hear this – ABC Transport wan drop N6.5 billion into the market like say e dey buy new motor for street. The board already sign the paper for a rights issue plus bond issuance, but the whole thing still dey wait for shareholders nod at the AGM. No one yet tell us how the money go split between equity and debt, and the price, ratio or bond rate still dey hidden. What we sabi be say the proposed raise is bigger than the whole group’s existing loans, overdrafts and lease liabilities by about N5 billion – current obligations sit at N1.48 billion. So the company dey look for fresh cash far beyond just refinancing.
On the plus side, the half‑year report shows revenue climbing 7 % to N8.27 billion while profit after tax rose 4.9 % to N488.52 million, even though profit before tax slipped 9.4 %. That tells say the business still got some momentum, but the cash‑flow picture is shaky – current liabilities outstrip current assets by nearly N4 billion. If the raise goes through, shareholders must ask: are we funding growth or just patching a hole? The uncomfortable truth is that without a clear deployment plan, this N6.5 billion could become another debt burden that eats future earnings. Make una drop your thoughts, whether this is a bold move to scale up or a desperate scramble for liquidity.