Preparatory to the listing of Dangote Sugar Refinery Plc on the Nigerian Stock Exchange, parties to its limited public offering involving three billion ordinary shares of 50 kobo each at N18 per share, to raise N54 billion from the capital market, met yesterday to endorse the offer documents.
Details of the Initial Public Offering (IPO), which is the largest in the history of the Nigerian capital market, show that a three billion ordinary shares of 50 kobo each owned by Dangote Industries Limited would be offered for sale to the public at a rate of N18 per share.
The offer is being handle by 11 Issuing Houses, which included FCMB Capital Markets Limited, IBTC Chartered Bank Plc, Vetiva Capital Market Limited, Access Bank Plc, BGL Securities Limited, Ecobank Nigeria Plc, FBN Capital Markets Limited, Fidelity Bank Plc, Intercontinental Capital Markets Limited, Oceanic Bank International Plc and Zenith Bank Plc.
However, IBTC and Vetiva Capital Management Limited are the lead Issuing Houses.
According to the prospectus, the IPO is being undertaken to give investors an opportunity to become part owners of Dangote Sugar, the market leader in the Nigerian sugar industry, which is currently 99 per cent owned by Dangote Industries Limited. The IPO will also enable the company meet the requirements for a listing on the Nigerian Stock Exchange.
The shares would be sold in form of a minimum of 500 ordinary shares and multiples of 50 ordinary shares thereafter.
Already, the prospectus stated that a maximum of 1.8 billion shares on offer, which would be available to the public between Wednesday November 15, 2006 and Friday December 22, 2006, would be preferentially allotted to identified investors.
Also, an application has been made to the council of the Nigerian Stock Exchange for the admission to its daily official list of whole of Dangote Sugar\'s issued and paid-up share capital.
Dangote Sugar is in the business of sugar refining and it operated, as the sugar division of DIL until it was spun-off as a separate company via a scheme of arrangement in January 2006.
The company\'s objective from the onset was to expand local sugar production by refining raw sugar for direct consumption and individual needs.
Dangote Sugar has the largest sugar refinery in Sub-Saharan Africa and one of the largest in the world, and is one of the very few sugar refiners that produce Vitamin A fortified white sugar.
The company recorded a profit before tax of N7.8 billion for the six months ended June 30 2006 and expects to record profit before tax of N17.9 billion, N23.7 billion and N30.1 billion respectively in the next four years. - guardian