Investors in BUA Cement Plc have started recording value in their investment as the stock has gained 17.1 per cent in two days after its listing on the Nigerian Stock Exchange (NSE) last Thursday.
The NSE listed 33.864 billion ordinary shares of 50 kobo each of the company at N35 per share, adding a total of N1.18 trillion to the market capitalisation of the NSE.
However, in the first two days of trading in the shares, the price rose to N41.00 per share, translating to a gain of 17.1 per cent. This has increased the market capitalisation of BUA Cement to N1.388 trillion.
The listing of West Africa’s second largest cement company, brought to conclusion, the merger between the BUA-owned cement entities, Cement Company of Northern Nigeria and Obu Cement company.
Speaking at the listing, Managing Director of the company, Yusuf Binji, said, “BUA Cement is poised to add even more value to the Nigerian economy as a whole through this listing. Over the past few years, we have significantly ramped up capacity and currently boast the most efficient and integrated operations in the Nigerian Cement Industry. This new publicly listed company will continue to deliver exceptional value to all stakeholders in the foreseeable future.”
According to him, the merger provided a compelling opportunity to capture significant synergies and create value for the benefit of the shareholders of both companies in the form of stronger competitive position of the enlarged company, economies of scale, enhanced operations and administrative efficiencies that will accrue.
The CEO of the NSE, Oscar Onyema, applauded the Founder of BUA Group and Chairman of BUA Cement, Abdul Samad Rabiu, for bringing BUA’s expanded cement business to the exchange it as a “show of confidence in the value the NSE offers.”