BUA Foods Shares Performance After Its 2022 Listing on NGX

Last updated on January 29th, 2024 at 02:52 am

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5,000 units of BUA Foods shares, purchased at N40 per share when it was listed on the Nigeria Exchange (NGX) on January 5, 2022, are now worth N1,359,000 (January 2024).

This increase is due to the rise in BUAFOODS stock price, which reached N271.8 at the close of trading on January 26, 2024, thanks latest bullish market.

The consumer goods company which specializes in the production of pasta, sugar, rice and edible oil businesses, is one of the 12 largest companies in Nigeria worth more than a trillion naira on NGX.

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BUAFoods’ stock price which started at N40 on January 2022 closed at N271.8kobo at the close of trading on January 26, 2024.

Background

On December 8, 2021, BUA Group consolidated its food conglomerates into a single entity ahead of its January 2021 listing.

“Nigerian investors would be given opportunity to invest in the Company for continuous growth. We will list the Company soon and Nigeria will have opportunity to contribute their resources to consolidate its leading position in the food industry,” BUA Group Chairman had said.

Recalled that BUA Foods sold 1,006,998,462 units of its shares Wednesday, January 5, 2022, its first day of listing on NGX with just 74 trades valued at N40,533,945,898.00 (NGN40.5billion).

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The elated BUA group Chairman had said:

“I am delighted that yet another member of BUA Group has been listed on the NGX.

“We appreciate the continued support of our stakeholders — financial advisers, stockbrokers, suppliers, customers, consumers and members of staff.”

BUA Foods Plc is a subsidiary of BUA Group owned by billionaire Alhaji Abdul Samad Rabiu, who is worth $5.9 billion, according to Forbes 2024 List.

What does the listing mean?

By the listing, it means that the shares of existing BUA Foods’ shareholders have been listed and they are free to trade their shares on the NGX.

The BUA Foods listing also means that N720 Billion has been added to the market capitalisation of listed equities, NGNX said optimistically that wealth will be created while boosting liquidity in the Nigerian capital market.

Company Profile

  • Market Classification: Main Board
  • Ticker: BUAFOODS
  • Trading Name: BUAFOODS (BUA Foods Plc)
  • Date of incorporation: April 13, 2005
  • Date listed: January 5, 2022
  • Sector: Consumer Goods
  • Subsector: Food products
  • Shares outstanding: 18,000,000,000
  • Nature of business: Manufacturing, processing, and distribution of food products
  • Company address: PC 32, Churchgate Street, Victoria Island, Lagos
  • Email: info@buafoodsplc.com
  • Company website: https://www.buafoodsplc.com/
  • Stockbrokers: 1) APT Securities and Funds Limited and 2) CardinalStone Securities Limited
  • Registrars: Africa Prudential PLC
  • Market Capitalisation at Listing: NGN720 Billion in 2022, it is now N4.8 Trillion

To maintain its market leadership in food processing and agribusiness and take advantage of the export prospect presented by the African Continental Free Trade Area (AfCFTA), BUA Foods Plc was born on Wednesday, December 8, 2021.

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Production lines

The new BUA Foods houses five existing companies, they are:

  • IRS Pasta
  • IRS Flour
  • BUA Rice Limited
  • BUA Oil Mills Limited
  • BUA Sugar Refinery Limited

IRS Pasta and IRS Flour

Its Pasta and flour plant which is the largest in Nigeria can produce 250,000 tons of pasta per year, meeting the confectionery needs for bread, and semolina.

With its 7 wheat storage silos capable of storing 32,000 tons, the company is production-ready to stop Nigeria’s reliance on the importation of pasta and flour.

Sugar Refinery Limited

BUA’s Sugar Refinery Limited houses refining and plantations through its two ultra-modern and automated mega sugar refineries.

One is situated in Lagos, Nigeria’s commercial capital, and the other in Port Harcourt, known as the Eastern Sugar Refinery.

Together, these refineries boast a total combined installed refining capacity of 1,500,000 metric tonnes. Additionally, the sugar refineries have a milling capacity of 250,000 metric tonnes.

In the realm of sugar plantations, BUA strategically acquired Lafiagi Sugar Company Ltd (LASUCO) located in Kwara State in 2008.

Undeterred, the company extended its reach by making significant investments in the establishment of another sugar plantation in Kogi State, named Bassa Sugar Company.

The company’s acquisition of approximately 70,000 hectares of land in Kwara and Kogi, back in 2022, I predicted that it would be a be a game-changer.

BUA Rice Limited

Hardly a day passes without a typical Nigerian home consuming rice, making BUA’s investment in rice plantation and production highly strategic.

As of this report, the BUA Rice Mill in Kano stands as the largest, boasting a capacity to produce 200,000 tonnes per annum.

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Ongoing efforts, as of January 6, 2022, aim to upgrade this capacity to 1 million metric tonnes per year.

In addition to its out-growers scheme, which targets approximately 100,000 rice farmers in Jigawa and Kano, BUA’s rice plantation in Kano spans about 10,000 hectares of land.

BUA Oil Mills Limited

BUA Oil Mills which was established in 2008, has two facilities, one in Kano (Nigeria Oil Mills, which it acquired in 2001) and BUA Oil Mills in Lagos.

It produces oil from groundnut and cotton. It also produces animal feed and soap.

Should I Buy or Not?

Any prospective investor need not question whether to invest in BUA Foods’ shares; the more pertinent query is, ‘Where can I buy BUA Foods shares?

If a company’s stock price can surge from N40 to over N280 within two years, it appears to be an attractive investment opportunity for me.

Moreover, consumer goods shares are particularly enticing due to their consumable nature.

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