Construction giants Costain West Africa Plc have reiterated its promise of N30.00 returns to investors in their just concluded hybrid offer which ended late December, 2007.
Harm Ploeger Executive Director (Finance) of the company made this disclosure to Proshare News/Investigations. ÃƒÆ’Ã†â€™Ãƒâ€šÃ‚Â¢ÃƒÆ’Ã‚Â¢ÃƒÂ¢Ã¢â€šÂ¬Ã…Â¡Ãƒâ€šÃ‚Â¬ÃƒÆ’Ã¢â‚¬Â¦ÃƒÂ¢Ã¢â€šÂ¬Ã…â€œBy March 2010 we are projecting our share price to hit N30.00 which will be good for those who have invested in the companyÃƒÆ’Ã†â€™Ãƒâ€šÃ‚Â¢ÃƒÆ’Ã‚Â¢ÃƒÂ¢Ã¢â€šÂ¬Ã…Â¡Ãƒâ€šÃ‚Â¬ÃƒÆ’Ã¢â‚¬Å¡Ãƒâ€šÃ‚Â he said.
The company December, 2007 approached the capital market to raise fresh funds of N7.6 billion through right issues and public offer. Costain offered for subscription 178.1 million ordinary shares of 50 Kobo each at N13.00 per share and rights issue of 519.7 million ordinary shares of 50 Kobo each at N11.00 per share respectively.
Ploeger says the offer was one of the most successful offers recently held in the Nigerian Capital market. ÃƒÆ’Ã†â€™Ãƒâ€šÃ‚Â¢ÃƒÆ’Ã‚Â¢ÃƒÂ¢Ã¢â€šÂ¬Ã…Â¡Ãƒâ€šÃ‚Â¬ÃƒÆ’Ã¢â‚¬Â¦ÃƒÂ¢Ã¢â€šÂ¬Ã…â€œPreliminary reports reaching us shows the hybrid offer was oversubscribed; but to what extent I cannot really sayÃƒÆ’Ã†â€™Ãƒâ€šÃ‚Â¢ÃƒÆ’Ã‚Â¢ÃƒÂ¢Ã¢â€šÂ¬Ã…Â¡Ãƒâ€šÃ‚Â¬ÃƒÆ’Ã¢â‚¬Å¡Ãƒâ€šÃ‚Â he said.
Financial documents made available to Proshare News/Investigations shows that Profit before Tax (PBT) rose from N41.3 million in 2003 to N147.2 million in year 2007 indicating an increase of 72 percent.
While Profit after Tax (PAT) also grew from N41.6 million in year 2003 to N141.2 million in year 2007 representing a 70.5 percent increase.
Joint issuing houses to the hybrid offer were Vetiva Capital Management Limited and FBN Capital Limited.