Honeywell plays up prospect after successful offer
Category: Public Offers Private Placements
Both investors and prospective investors who bought into the just concluded Honeywell Flour Mills plc’s offer have been assured of reaping from the very impressive financial year, which ends in March, 2009. The company went into the market at a torrid time when the short-time outlook was viewed as volatile to offer for sale 1,252,941,177 ordinary shares of 50k each, as well as 941,176,471 ordinary shares of 50 Kobo each at N8.50 per share.
The management of the company, while explaining the rationale for its forays into the capital market recently, said the move was anchored on the belief that the company’s records and fundamentals are strong enough to win the confidence of the investing public.
“The prospects for the growth of the flour milling industry have never been better, with bread being the staple food in most Nigerian homes. The demand for flour and consumption of bread are expected to continue. As far as this continues, we will be highly profitable, as we have always been,” declared Babatunde Odunayo, managing director, Honeywell Flour Mills plc.
Close sources to the company say that the offer may have been oversubscribed and were surprised at the response from investors, even at this very critical period of the year.
Bayo Adeleke, managing director of First Bank Capital, one of the Lead Issuing Houses to the offer, shed some light on the IPO and Honeywell as well. According to him, “This is a good opportunity for Nigerians to invest in one of the biggest and most successful conglomerates.
The fundamentals are very impressive and the board and management of the company are proven businessmen and women who are embodiments of the spirit of the Nigerian enterprise.
“This adds up to a strong and solid company on the road to achieving more greatness.”
Honeywell Flour Mills plc is part of the Honeywell Nigeria Group, a conglomerate which is led by its Chairman, Ayoola Oba Otudeko, a business man and current president of the governing council of the Nigerian Stock Exchange (NSE).