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