BUA Ce­ment lists third big­gest N1.18tn shares on NSE

The Punch - - FRONT PAGE - Fey­isayo Popoola

BUA Ce­ment Plc on Thurs­day listed its shares on the Nige­rian Stock Ex­change, fol­low­ing the merger of Ce­ment Com­pany of North­ern Nige­ria Plc and Obu Ce­ment Com­pany Lim­ited.

The com­pany listed 33.86 bil­lion or­di­nary shares of 50 kobo each at N35 per share, thereby ad­ding N1.18tn to the to­tal mar­ket cap­i­tal­i­sa­tion of the Ex­change.

BUA Ce­ment, with its list­ing, has dis­placed Airtel Africa Plc by be­com­ing the third largest com­pany on the NSE.

Dan­gote Ce­ment Plc is the largest com­pany listed on the NSE with a mar­ket cap­i­tal­i­sa­tion of N2.98tn and share price of N175 as of Thurs­day while MTN Nige­ria Com­mu­ni­ca­tions Plc oc­cu­pies the sec­ond po­si­tion with a mar­ket cap­i­tal­i­sa­tion of N2.36tn and share price of N116.

Airtel Africa now be­comes the fourth largest com­pany on the NSE with a mar­ket cap­i­tal­i­sa­tion of N1.12tn and share price of N298.

Af­ter the list­ing of BUA Ce­ment, the share price in­creased by 9.86 per cent to close at N38.45.

A to­tal of 12.92 mil­lion BUA Ce­ment shares worth N496.76m were traded in 39 deals.

The Chief Ex­ec­u­tive Of­fi­cer, NSE, Mr Os­car Onyema, at the list­ing cer­e­mony, said it was ex­cit­ing for the Ex­change to record such a ma­jor list­ing at the be­gin­ning of the year.

He noted that it was 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 in very short pe­riod of time.

The Man­ag­ing Direc­tor/chief Ex­ec­u­tive Of­fi­cer, BUA Ce­ment Plc, Yusuf Binji, said it was a ma­jor ful­fil­ment for the group to have its shares listed af­ter a merger of two com­pa­nies that con­trolled sig­nif­i­cant mar­kets in South­ern and North­ern parts of the coun­try.

He ex­plained that while the CCNN was the listed com­pany be­fore now, its merger with Obu Ce­ment gave birth to BUA Ce­ment Plc, an en­larged firm with a to­tal in­stalled ca­pac­ity of eight met­ric tonnes per an­num.

Binji said, “With the list­ing, share­hold­ers should ex­pect bet­ter re­turns be­cause the com­pany will be one of the best div­i­dend pay­ing com­pa­nies.

“Our in­stalled ca­pac­ity will be in­creased to 11mtpa. In ad­di­tion to meet­ing the de­mand from cus­tomers in our core re­gions in the coun­try, the en­larged com­pany will be po­si­tioned to dis­trib­ute prod­ucts in new ge­o­graph­i­cal mar­kets, cre­at­ing the po­ten­tial for ad­di­tional share­holder value cre­ation.

He stated that the merger of the two com­pa­nies would pro­vide op­por­tu­ni­ties for sig­nif­i­cant cost­sav­ing and im­proved op­er­a­tional ef­fi­cien­cies by stream­lin­ing op­er­a­tions and op­ti­mis­ing the use of com­bined re­sources.

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