By Omobayo Azeez
eTranzact International Plc, an electronic payment solutions provider, listed at the Nigerian Stock Exchange (NSE) has disclosed plan to raise about N7 billion fresh funds from existing shareholders via a rights issue.
In corporate notification on Wednesday at the NSE, it said the money would be raised through the issuance of 4,666,666,667 shares of 50 kobo each at N1.50 per share in a ratio of 10 new shares for every nine shares already held.
Stockbrokers to the eTranzact, Cordros Securities Limited, had submitted an application for the approval and listing of the right issue.
The board of directors of the company has last got the nod of the shareholders to raise additional capital in the stock market to expand and boost its operations.
Wole Abegunde, the board chairman of etranzact, had said the decision to raise additional capital became imperative considering the need of the company to expand its operations, deepen its market share and to remain competitive in the financial technology industry.
According to him, the capital to be raised will be used to upgrade and enhance the company’s technology infrastructure and network security systems and also to improve on its service delivery.
He further stated that the company will also invest in its agent network expansion programme, human resources and employee development.
Also, speaking, Niyi Toluwalope, the managing director/CEO of eTranzact, said that the injection of additional equity would enable the company’s management to strategically maintain its leading position as a key market leader within the electronic payment industry.
He disclosed that the company would acquire state-of-the-art infrastructure, ensure that it retains the best skill set available, achieve a fast response rate, reduce downtime, and expands its service offerings and market reach.
eTranzact is principally engaged in the processing of all facets of electronic payment transactions using its switching platform.
The company’s segments are Air time purchases, Other commissions, and Maintenance and support services, software development and others, while it also provides maintenance and software development services.
The switching platform processes transactions across various channels, which include mobile phones (global system for mobile communications (GSM), code division multiple access (CDMA) or analog), Web (using any Internet browser in a secured transaction), point of sale (PoS), automated teller machine (ATM), other mobile devices and bank branches.