BUA Cement PLC stock has lost N607.9bn in market capitalisation after the cement manufacturer’s share price fell to N67.05.
The company’s shares opened at N85 on Monday, January 4, 2021 on the Nigerian stock exchange, but the shares have struggled to maintain that record peak.
As at January 4, the company’s market capitalisation stood at N2,878,470,095,100.
The market cap is based on BUA Cement’s N85 share price and outstanding shares of 33,864,354,060.
But since January, BUA’s share price has depreciated by 21.1 per cent (N17.95) to N67.05 by December 31, 2021.
BUA on December 29 lost N2523bn in a single day after its shares fell from N74.5 held for 52 days to N67.05 per share, data analysed by THE WHISTLER reveals.
The development is coming amidst the company’s aggressive drive to expand its cement business.
Abdulsalmad Rabiu, the Chairman and founder of BUA Group had said in 2020 that the company was pursuing to build three cement plants in Sokoto, Edo and Adamawa.
The project would be constructed at the cost of $1.05bn and it is expected to be completed by the end of 2022.
The company had revealed that when the plants are completed, its total installed capacity would expand to 20 million Metric Tonnes yearly.
In December 2021, Sinoma International Engineering announced the commissioning of the new 3Mt/year production Line 3 at BUA Cement’s Sokoto cement plant at Kalambania in Sokoto state.
The new plant has elevated BUA’s installed capacity from 8MTPA to 11 MTPA.
By implication, BUA has overataken Lafarge Africa with 10.5 million MTPA capacity.