Market Performance: BUA Foods Gains N420 billion In One Week
BUA Group recorded a massive gain in market value as its newly listed BUA Foods gained N420.49 billion in a single week in the capital market..The share price of BUA Foods, increased by 65% in one week after listing on the floor of the Nigerian Stock market to trade at N66 per share as of Friday 14th January 2022, compared to its listing price of N40 per ordinary share in the previous week.
A popular business data platform, Nairametrics had reported earlier in the week, that BUA Foods surpassed N1 trillion market capitalization after just two days of trading on the Nigerian capital market. As of the time, the share price of the company was trading at N58.5 per share. Since then, it has rallied 12.8% to N66 per unit of share.This high-flying performance in the capital market will definitely impact the brand equity of the brand owner, Abdulsamad Rabiu who is listed among the richest persons in Africa.
According to the information contained in the company’s listing memorandum, Abdulsamad Rabiu controls about 89.849% of BUA Foods holding, owning a total of 16.17 billion units of shares from the total 18 billion listed shares.Rabiu’s worth in the company, which was around N646.9 billion in the previous week has now grown beyond the N1 trillion threshold, to stand at N1.07 trillion as of the end of trading activities on Friday.
BUA Foods is a fast-moving consumer goods (“FMCG”) business, which processes, manufactures, produces, and distributes food materials such as sugar, flour, pasta, rice, and edible oils as well as packaged foods
The brand, BUA Foods was created in 2021 as a consolidation of all the foods divisions of BUA Group. This includes Nigerian Oil Mills Limited, which was acquired by BUA group in 2001, BUA Flour Mills incorporated in 2005, Lafiagi Sugar acquired by BUA group in 2008, BUA Pasta commissioned and integrated into BUA Flour Mills in 2011 and, BUA Rice out-growers scheme established in 2017. The company’s business operations comprise of five divisions, which include Sugar, Flour, Pasta, Rice, and Edible Oils.