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Dangote Flour offers investors 7% interest on IPO refund


March 04, 2008


Dangote Flour Mills Plc is offering investors who were not allotted the shares of the company seven percent interest on their Initial Public Offer (IPO) refund. Tony Esene, General Manager (GM) Corporate Finance of the company made this disclosure to Proshare N/I.



Esene disclosed that the interest was seven percent per annum for 74 days, “the 74 days was from the deadline of submission by stock brokers till when the Security and Exchange Commission (SEC) approved the allotment” he said.




He also disclosed to Proshare N/I  that investors who applied for the minimum units of 1,000 ordinary shares were given 100 percent allotment. “But above 1,000 units we had to prorate it from 60 percent to 5.3 percent” he said.




According to him, the surplus money for investors who did not get full allotment has been returned to the various banks and Stock broking firms through which the individuals bought the offer.




“By now I believe everybody must have received their refund, but if not, they should contact the banks and stock broking firm which they used when applying for the offer” Esene said.




Dangote Flour Mills Plc third quarter of 2007 offered to the investing public by way of an offer for sale 1.250 billion ordinary shares of 50 Kobo each at N15.00 per share.




As at the time of filling in this report, the 2007 annual reports and accounts of the company is being audited and could not be made available to Proshare N/I.




However, a financial document made available to Proshare N/I shows that the company has projected to offer investors N2.50 Kobo dividend in 2011.  This is 525 percent more of the projected dividend of 40 Kobo to be offered in 2007.




The offer which was listed December, 2007 on the floors of the Nigerian Stock Exchange (NSE) was 620 percent oversubscribed, “we offered 1.250 billion for sale and we got a subscription of over 7.0 billion” Esene said.



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