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Dangote Flour public offer closes today


October 08, 2007/Punch



The Dangote Flour Initial Public offering, which opened to investors on September 6, closes today.


The company said in a statement on Saturday that prospective investors yet to invest in the share have up to the close of work today to do so.


The closing date of the offer had earlier been extended from September 27 to October 8, due to complain from many willing investors of lack of forms.


According to the statement, investors’ demand had, within the first week of the offer, overwhelmed initial projections, consequently forcing the company to reduce its preferential allotment from 60 per cent to 20 per cent.


It was reliably gathered that this increased the shares on offer to the public to one billion ordinary shares out of the total share offering of 1.250billion, while the preferential allotment was reduced in order to 250million ordinary shares of 50kobo at N15 per share.


This according to company sources, became imperative, to accommodate the huge public demand.


The company had held Investors’ Forum in Lagos, Aba, Calabar & Kano states respectively to sensitise the investing public on the need to buy into the company’s share.


The flour milling business operated as a division of Dangote Industries Limited until January last year when it was spun-off as Dangote Flour Mills Plc.


The company has itself grown to become a group of companies consisting of its traditional business of flour milling, pasta production (through its wholly owned subsidiary – Dangote Pasta Limited) and polypropylene bags production (through another of its wholly owned subsidiary – Dangote Agro Sacks Limited).


The company has an installed capacity to process 4,000 MT per day of flour and this, according to the statement, is being increased to 7, 300 MT per day in the next six months.


“Dangote Pasta currently produces about 10.8million cartons of pasta per annum and this will increase shortly to 20million cartons per annum with the installation of two additional production lines already at the end of October.”


Dangote Agro Sacks currently produces about 20 million polypropylene bags per month, and will be at 30 million by 2008 and this will increase progressively to about 50 million bags per month by 2010.”

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