- Friday, May 3, 2024
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It listed by way of introduction
of 4.0 billion ordinary shares at 50 kobo each on the Growth Board of the NGX
at N2.96 per share. The listing added N11.84 billion to the NGX's total market
capitalisation.
Chairman, Mecure Industries Plc,
Mr. Samir Udani, said the listing was a major development for the company.
He said as the company
transformed from a private company to a public one with hopes of achieving more
visibility and expansion.
"It's a very significant
move on the part of the company and the board members because a family-run
management now is in the eyes of the public. Very important because this is
going to get us visibility and also bring the responsibility to all of us. So
yes, we have some good expansion plans which we will try to actualize by
listing on the stock exchange," Udani said.
Touching on the technicalities
involved in the manufacturing of products by the company, as well as addressing
unemployment and forex conservation, Udani said 30 per cent of their products
are only manufactured in the country while 70 per cent are imported.
"So there's a lot of scope
for local producers to expand and grow, especially when we have challenges like
foreign exchange (forex). We can create jobs here and make sure that we
conserve as much of forex as possible by producing locally,"Udani said.
Chief Executive Officer, Nigerian
Exchange (NGX), Mr. Temi Popoola said the addition of the healthcare
manufacturing company to the Growth Board would impact on the exchange and the
country.
"When you look at our
exchange today, one of the things that is notably absent is the number of
healthcare companies that you can invest into in our exchange. So to have a
company that, I would say, sits at that intersection of manufacturing on one
hand, and manufacturing towards the healthcare sector, we welcome that very much,
because then of course it broadens the scope of the investable assets for us at
the exchange. It also demonstrates what I would call the core value that the
capital markets bring.
"We can't over-emphasise the
importance of healthcare to our country, Nigeria. So to find a company
manufacturing, you know, healthcare related products that has now the
opportunity of the capital markets to raise capital, to amplify its visibility
as an example, to help it build more sustainable businesses, is one that certainly
does gladden our hearts," Popoola said.
Addressing how the listing will
add to the capitalization of the market, Popoola said: "So we're starting
this today, it's a listing by introduction, and we've seen that as a model that
has worked quite well over the past few years in our capital markets. We've
seen very big companies list by introduction, and then they do not too long
after that a follow on offer. And we've seen some smaller companies also do the
same.
"Today we're listing just
about N10 billion worth of market capitalization that adds to the markets. But
of course, as we continue to comply with the free flow requirements that we
have, and as it looks to, as I said earlier, a capital raise; we expect to see
that as we've seen with other corporates also build and grow more
materially."
He recommended similar investment
portfolio and listing on the exchange by foreigners.
"When non-Nigerians come
into our country, invest in our country, build businesses in Nigeria, and can
list them on the exchange, I think it's a model that I would like to encourage others
to adopt," Popoola said.
Mecure Industries reported
revenue of N26.6 billion in 2022 from N20.6 billion in 2021. With a net asset
of N9.3 billion, it also has retained earnings of N7.3 billion.
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