Stock Market attracts N720 billion from BUA Foods listing on the Nigerian Exchange
By Dele Ojo
BUA Foods has listed its shares on the Main Board of the Nigerian Exchange, by way of Introduction of its 18 billion ordinary shares of ₦0.50 each in order to create liquidity for its ordinary shares in the secondary market and have access to a platform for raising long-term capital in the future from a wide range of domestic and international investors if and when required, amongst others.
The shares came to the market at a listing price of N40.00 per ordinary share, and therefore downloading a gross N720.00 billion of the company’s capitalisation into the Nigerian Exchange.
According to the company, it’s current operations and principal activities include: carrying on the business of cultivating, processing, manufacturing, producing, mixing, packing, preserving, extracting, refining, importing, exporting, buying, selling, trading, and dealing in all kinds of foods, consumables, food materials or derivatives as well as raw materials for making all kinds of foods, food products and ingredients for making any kind of foods and consumables.
As at the date of this Listing Memorandum the capacity utilisation of the Company’s business divisions are as follows: Sugar Division 75%, Flour Division84%, and Pasta Division 54%.
BUA Foods PLC was formed in November 2021 following a restructuring by way of a scheme under Section 711 of CAMA among BUA Sugar Refinery Limited, IRS Flour Mills Limited, IRS Pasta Limited, BUA Rice Limited, BUA Oil Mills Limited, and BUA Foods Limited, further to which BUA Sugar Refinery (a private limited liability company, incorporated on 13 April 2005 and commenced business operations in September 2008) emerged as the surviving entity.
As part of the Restructuring, the name of the enlarged entity was changed to BUA Foods with its operations reorganised into five business divisions: Sugar, Flour, Pasta, Rice and Edible Oils. In December 2021, the Company was converted into a public limited liability company. BUA Foods is affiliated with diverse group companies under the BUA brand that span the food and infrastructure sectors.
BUA Foods is associated with high quality, accessible, competitively priced and innovative food
products. The Company has over the years established itself as a successful food manufacturing and
processing company in Nigeria.
BUA Foods owns the second largest sugar refinery in West Africa, with total sugar refining capacity of
1.5 million MT per annum, which is able to meet 93% of Nigeria’s estimated sugar consumption rate in
2020 of 1.6 million MT per annum, as estimated by Fitch Solution in 2020.
According to the Company, its sugar refining capacity has earned the Company a market share of 35% in Q3 2021, representing a 9% increase from its 2020 position of 26% market share. This was achieved by the addition of 750,000MT per annum capacity to the Company’s sugar refinery in Port Harcourt.
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