Flour Mills of Nigeria Plc is the latest blue chip firm to embark on capital raise in the Nigerian Stock Exchange (NSE). In a notice sent to the NSE, the firm to raise capital through a combination of rights issue and medium term notes. Guinness Nigeria Plc had last week announced that its rights issue had been 116% subscribed. UPDC, Portland Paints Plc, and Livest
How much is the firm raising?
While the debt portion is put at N70 billion, the firm is yet to state how much it will raise through the rights issue. Flour Mills, had in 2016 got approval from the Securities and Exchange Commission (SEC) to raise up to N40 billion though a rights issue. The firm is currently consulting with stakeholders (finanicial advisers, stakeholders and issuing houses) to determine the right time and cost for issuing the instruments.
Here is a copy of the notice.
Flour Mills of Nigeria Plc (FMN) was incorporated on 29th September, 1960 as a private limited liability company with a paid-up share capital of N1 million and converted to a public company in November, 1978.
The group is primarily engaged in flour milling; production of pasta, noodles, edible oil and refined sugar; production of livestock feeds; farming and other agro-allied activities; distribution and sale of fertilizer; manufacturing and marketing of laminated woven polypropylene sacks and flexible packaging materials. Flour Mills is also involved in ports operation of Terminals A and B at the Apapa Port, as well as shipping logistics.
Flour Mills Shares closed at N27.87 in today’s trading session on the NSE, up 5%. Year to date, the shares are up 50%. Results for the period ended show revenue increased from N342 billion in 2016 to N524 billion in 2017. Profit before tax however fell from N11.4 billion in 2016 to N10.4 billion in 2017. The company declared a dividend of N1.00 per share.