Dr. Obafoluke Otudeko lost a staggering N371 million from his Honeywell flour stake in a single trading session, at the back of sustained sell down in the shares of Honeywell Flour Mills Plc, as local investors as cycle out funds in search of yields.
Otudeko who is the founder and chairman of Honeywell Group, is the single majority shareholder of the company, considering his stake of about 5.3 billion units of the total issued shares.
The 75% equity holder of Honeywell Nigeria Plc saw the value of his stake dip by 5.6% at the back of sell-off pressures in the company’s shares – a move driven by investor’s portfolio rotation activities.
This move saw the shares of his flagship company, which commenced operation in 1985, fall from N1.25 at the open of the market on March 18th, to N1.18 at the close of the market, with the resultant effect felt in Honeywell’s market cap.
However, the valuation of his total 5.29 billion units holding – held through Siloam Global Services Limited – at prevailing market price on 18th March 2021, reveals that his stake is presently worth about N6.247 billion – down from the previous day’s N6.618 billion valuation.
What you should know
- The NSE All-share index and market capitalization at the close of trading activities on the exchange on the 18th of March appreciated by 0.54% at the back of gains in the shares of Zenith Bank, GT Bank, Dangote Sugar.
- At the close of trading activities on the exchange yesterday, the shares of Honeywell Flour Mill Cleared at N1.18, with 246,653 units of the company shares worth N293,168, were traded in 17 deals on the floor of the exchange.
- The shares of the company are currently trading 34% higher than its 52-week low, thus leaving an open position for bargain hunters who believe in the long-term fundamental strength of the company, and also presenting existing holders who bought shares of the company at this year’s high of N1.49 per share, with the opportunities to average down.
- At the close of the market on the 18th of march, the market capitalization of all the issued shares of Honeywell flour mills Plc is put at N9.357 billion.