BUA Foods, a part of the BUA Group family has seen its market capitalization balloon to N957.6 billion just one day after listing on the Nigerian Stock Exchange.
The company was listed on the Nigerian Exchange on Wednesday, January 5th, 2021, listing 18 billion shares at a share price of N40 per share. However, in just three days since listing the company’s share price has gained 32.5% closing the week at N53 per share.
BUA Foods with an annualized revenue of N321 billion is now valued at N957 billion is close to joining the SWOOT (Stocks Worth Over One Trillion) naira. The only SWOOTs we have currently are Dangote Cement, MTN, Airtel, Nestle, and BUA Cement.
BUA Foods is now 9x bigger than Flour Mills
- BUA Foods is now only second to Nestle as the largest company by market capitalization on the stock exchange and by our estimate, will hit the one trillion naira market cap by early next week.
- BUA Foods is also now larger than Flour Mills, one of the largest integrated food manufacturing and distribution companies in Nigeria.
- Flour Mills is valued at just N112 billion even though it has a revenue of about N771 billion annually.
Impact on Forbes
- The valuation could likely catapult Alhaji Abudulsamad on the Forbes Billionaire list which is set to be published at the end of the month.
- Sources with knowledge of how the Forbes Billionaire list is gathered inform Nairametrics that the cut-off date for when submissions are made is January 20th.
- Thus this rally will likely be sustained for weeks as the share price valuation adds to the Forbes valuation of the Chairman of BUA Group Abdulsamad Isyaku Rabiu.
- Abdulsamad currently owns over 90% of BUA Foods.
- Forbes currently values his “real-time net worth” at $4.7 billion as of January 7th 2022. It appears his valuation of BUA Foods is yet to be captured.
- In fact, based on the current valuation of BUA Foods, estimates place his personal valuation at around $7 billion making him Africa’s second richest man.
About BUA Foods
- BUA Foods reported proforma revenue of N303.8 billion in the first 11 months of 2021 compared to N192.8 billion in 2020, its last full-year result.
- Profit for the first 11 months of 2021 was N78.8 billion compared to N37.6 billion in 2020 12 months.
- BUA Foods is a conglomerate that includes, Sugar, Pasta, Rice, Flour and FTZ businesses owned by the group.