BUA Foods Rules Out Plan To Sell Shares To Nigerians

BUA Foods PLC has ruled out plans for an Initial Public Offer (IPO)  to Nigerians any time soon.

Ayodele Abioye, Group Managing Director of BUA Foods disclosed this at an  event with the theme  “Facts Behind the Listing – BUA Foods,” held virtually on Tuesday.

The company, which is a subsidiary of the BUA Group owned by Africa’s sixth richest man, Abdulsamad Rabiu, was listed on January 5, 2022.

BUA Foods attained a quoted company status when it listed 18 billion units of ordinary shares on the Nigerian Exchange Ltd, Lagos.

The company was listed at N40 per unit putting its valuation at N792bn, but its shares have increased to N61.8 per unit.

Reports suggest that the company is now valued at N1.5trn.

With the capitalisation, BUA Foods is now the 5th biggest listed entity on the local bourse by market.

Abioye said, “In terms of consideration of public offer, as a listed company, it is an option. However, we believe that at the appropriate time, our board will make a decision and we will take a decision as a business to use any available option with our current status to be able to harness capital as desired in order for us to continue to keep our business expansion going and all our intents.

“In terms of current reality, talking about expansion, we have three operating divisions at this point in time that are contributing to the revenue stream.”

As part of the listing requirements, the manufacturer said it restructured its BUA Sugar, BUA Rice, BUA Oil, IRS Flour, IRS Pasta and BUA Foods Limited.

He explained that BUA Sugar emerged as the surviving entity, adding that it was the emerging company that was converted to Public Limited Company with the name changing to BUA Foods PLC.