By Ikechukwu Emelike

Wednesday started with the opening of a public offer by Costain west Africa plc. The public offer is expected to fetch the company a total of N8 billion . The company which has recorded tremendous improvements in its operations lately is offering for subscription 178.2 million ordinary shares of 50 kobo each at N13 per share and rights issue of 519.7 million ordinary shares of 50 kobo each at N11 per share.

The offer which is supposed to last from December 12, 2007 till December 31, 2007, is already underwritten by the joint underwriters to the tune of 142.53 million ordinary shares, while 71.26 million shares representing 40 % of the offer will be preferentially allotted to some institutional investors.

While explaining the rationale for sourcing the funds from the capital market at the last board of directors meeting held in Lagos, managing director of the company Phil Wharton , said it was conceived out of the quest to grow the business of the company . ”Funds gotten from the offer would place the company in a good position to further invest in plant and equipment, furniture and joinery division, transportation, business acquisition and working capital to confidently enable the company compete and be a major player in the Nigerian construction industry and beyond”, he said. He advised prospective investors to take advantage of the opportunity provided by the current offer to invest in the company assuring them that the future of the re- branded Costain west Africa plc remains very bright with opportunities.

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This entry was posted on Friday, December 14th, 2007 at 11:58 am and is filed under Public Offers. You can follow any responses to this entry through the RSS 2.0 feed. Tags: Costain
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