Dangote Flour Mills IPO opens

Dangote Flour Mills IPO opens

September 05, 2007/Punch



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The much awaited initial public offering of Dangote Flour Mills Plc will open on Thursday (today) to the investing public.


The company is offering 1.25billion ordinary shares of 50k each at N15 per share and the offer will be managed by 11 issuing houses.


The IPO is coming against the backdrop of high expectations following the hugely successful IPO of the Dangote Sugar Refinery late last year.


Dangote Flour Mills commenced operations in 1999 as a division of DIL.


Following the strategic decision of Dangote Industries Limited to unbundle its various operations, Dangote Flour Mills Plc was incorporated in 2006.


The restructuring was completed in January 2006, when the Federal High Court sanctioned a Scheme of Arrangement wherein all the assets, liabilities and undertakings of the erstwhile flour mill division of DIL were transferred to Dangote Flour Mills Plc..


The company is in the business of flour milling, processing and marketing of branded flour. Its product portfolio comprises bread flour, pasta semolina and wheat offal.


From an initial installed capacity of 500 metric tonnes per day at its Apapa mill, Dangote Flour Mills says it has expanded rapidly by opening three other flour mills in Kano, KanoState, Calabar, CrossRiverState and Ilorin, KwaraState.


Each of the mills started with an installed capacity of 500 MT per day but three of them were subsequently expanded resulting in a total of 4000 MT per day.


 ÃƒÆ’ƒÆ’¢â‚¬Å“These expansions were in response to a growing national demand for flour and flour-based products in addition to the company’s drive for increased market share,†the company said in a statement.


According to the statement, the company imports its principal raw materials, wheat, from the United States in shiploads of about 35,000 MT each. 


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