Following the listing of BUA Cement shares, the market capitalisation of the Nigerian Stock Exchange (NSE) rose by N1.18 trillion at the close of business yesterday.
The listing of the ordinary shares of 50 kobo each at N35 per share together with the addition of its N1.18 trillion has catapulted BUA Cement Plc to the third largest company on NSE.
This is coming after the successful merger of CCNN and Obu Cement Company, who are both members of BUA Group founded by Alhaji Abdulsamad Rabiu. The merger involved the transfer of all CCNN’s assets, liabilities and undertakings including employees, real properties and intellectual property rights to Obu Cement.
In consideration for the transfer, CCNN shareholders will receive shares in Obu Cement and the company will be dissolved without being wound up.
Speaking on the listing, the NSE Chief Executive Officer, Oscar Onyema, said it is exciting for the exchange to record such a major listing at the beginning of the year, noting that it is another opportunity for investors to have access to a company with good track record.
According to him, the company has plans to move to the Premium Board of the NSE within short period.
Commenting on the development, the Managing Director/CEO of BUA Cement Plc, Yusuf Binji, noted that the listing was a major fulfillment for the group to have its shares listed after a merger of two companies that control significant markets in Southern and Northern parts of the country.
Binji said that the listing would bring value for its shareholders and assured that the company will bec ome the top best dividend -paying company, while adding that its installed capacity would be increased to 11 metric tonnes per annum(mtpa).
“Now we are bringing in about 13 billion shares from the defunct CCNN and 20 billion from Obu Cement. And this gives us a total share capacity of about 33 billion shares with a total market capitalisation of N1.18 trillion which is equivalent to $3.29 billion. The merger has provided a platform where the enlarged company benefits from economies of scale in procurement, distribution and manufacturing of the products offered to our customers.
We are coming into the market at the beginning of the year and since trading has commenced, we expect to see a lot of value added for the shareholders during the course of the year”, he explained.