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Honeywell Flour Mills set for N18.65bn IPO


All is set for the hybrid Initial Public Offer of Honeywell Flour Mills Plc, which will kick off on December 3, 2008.


The company seeks to raise N18.65bn by way of offer for sale of 1,252,941.177 shares of 50 kobo each at N8.50 per share, and an offer for subscription of 941,176,471 ordinary shares of 50 kobo each, also at N8.50 per share.


The offer document was signed by all the professional parties to the IPO during the company’s completion board meeting held in Lagos on Wednesday.


According to the document, a minimum of 1,000 units of shares may be applied for by investors at N8.50 per share, and additional shares in multiples of 100 units. The offer is being packaged by FBN Capital Limited and BGL Limited as the co-issue, while BankPHB, Oceanic Capital and UBA Capital are the joint issuing houses.


The offer document stated that in line with the company’s commitment to operational excellence and customer satisfaction, the funds raised would be invested in the creation of new product lines and the overall improvement of existing lines.


The Chairman of the company, Mr. Oba Otudeko, said by taking the company to the market, Honeywell Flour Mills Plc, a part of the Honeywell Group, was reaffirming its faith in the capital market as the most veritable source of funds for both the private and public sectors of the economy.


He said notwithstanding the global financial crisis, local and international market analysts had said that there could not be a better time than now to instil confidence in the financial markets across the world.


According to him, “Part of the proceeds of the offer will be used to expand the company’s semolina production capacity as well set up a pasta manufacturing plant for our subsidiary, HSFL. This will enable us to take advantage of emerging opportunities in the local markets for speedy growth and profitability.”


Otudeko added that another portion of the proceeds would be used to improve working capital.  - Punch

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