The founder and chairman of the Honeywell Group, Oba Otudeko gained a whopping N690 million from his Honeywell Flour Mills Plc stake in a single session on the Nigerian Stock Exchange, as local investors bid up the shares of his flour milling company.
Otudeko who is also well known for his investment in the oceanfront Radisson Blu in Lagos, is the single majority shareholder of Honeywell Flour Mills, considering his ownership stake in the company which runs to about 5.29 billion units, out of the 7.93 billion total issued shares of the company.
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Otudeko’s stake in Honeywell Flour Mills has a valuation of about N7.58 billion
His 75% ownership stake in Honeywell Flour Mills of about 5.29 billion issued shares of the company which he holds indirectly through Siloam Global Services Limited, is presently worth about N7.57 billion, up from a N6.88 billion valuation at market open yesterday 20th of April 2021.
The recent gains in Otudeko stake were driven by buying pressure in the shares of his company as the move saw the shares of Honeywell surge by 10% in a single session, from N1.30 at the open of the market on the 20th of April, to N1.43 at the close of the market.
This bullish move in the shares of the miller pushed its market capitalization up by about N1.03 billion on the exchange yesterday, from N10.31 billion as of Monday, 19th April to N11.34 billion at the close of the market.\
READ: Flour Mills shares surge by 6.9%, lifting the miller’s capitalization by N8.2 billion
What you should know
At the close of trading activities yesterday on the exchange, the market capitalization of all the issued shares of Honeywell flour mills Plc was put at N11.34 billion.
The shares of the flour miller cleared at N1.43 per share. This is 10% higher than Monday’s N1.30 closing price, with about 8,935,946 ordinary shares of the company exchanged in 150 executed deals on the Exchange yesterday, worth about N12.56 million.
Honeywell’s shares are currently trading at 62.5% higher than its 52-week low of N0.88 per share, and 8.33% lower than its 52-week high.
The prevailing market price presents bargain hunters who bought shares of the company low with the opportunity to book some profits.
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Market performance
- The Nigerian Stock Exchange All-Share Index and Market Capitalization appreciated by 0.43% to close higher at 39,015.58 index points and N20.418 trillion respectively, at the end of trading activities yesterday.
- The NSE Consumer Goods Index, an investable benchmark designed to track the performance of consumer goods companies like Honeywell Flour Mills, appreciated by 0.38% to close the day higher at 555.22 index points.
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