ENCON seeks to raise N60 billion through private placement.
May 24th, 2008 Ikechukwu Emelike || ikechukwu@stockmarketnigeria.com
By Ikechukwu Emelike.
Energy Company of Nigeria Limited (ENCON) is to raise N60 billion through a private placement. The company is offerings to investors by way of Placement 3.333 billion Ordinary Shares of 50 Kobo each at N18.00 per share, selling a minimum of 50,000 Ordinary Shares and in multiples of 10,000 shares thereafter. The company which is one of the subsidiaries of Negris Holdings Limited has said that the purpose of the placement was to raise capital to finance the expansion of the company’s operations.
ENCON was established to undertake Negris power development business following the deregulation of electricity supply industry in Nigeria. According to the company’s three year financial summary turnover has grown from N695.679 million in 2005 to N726.611 million in 2007 indicating a growth of 10 percent. Profit before tax also increased from N31.259 million in year 2005 to N203.707 million in year 2007 showing an increase of 552 percent. While after tax profit grew from N31, 651 million in 2005 to N195.622 million in 2007 representing a growth of 518 percent in the period under review.
The placement forcast shows that ENCON would be giving its investors a N2.25 Kobo, N3.30 Kobo, N20.96 Kobo, N41.28 Kobo and N54.67 Kobo dividend payout in the 2008, 2009, 2010, 2011 and 2010 financial year end respectively. The company has proposed to give investors a N54.67 Kobo dividend in the 2012 financial year end as dividend payout will be 75 percent of distributable profits of the company in years 2008, 2009, and 2010 respectively, while same will be 50 percent of distributable profit in years 2011 and 2012 respectively. Forecast gross revenue is expected to rise from N1.085 billion in year 2008 to N24.350 billion year 2012 indicating a rise of 2,144 percent in the period under review.
Profit before tax is to also increase from N438 million in 2008 to N11.059 billion in year 2012 showing an increase of 2,433 percent. While profit after tax is expected to grow from N330 million in year 2008 to N10.382 billion in year 2012 representing an increase of 3,046 percent. The private placement which has Meristem Securities Limited as its issuing house is expected to close on June 04, 2008.
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Is this private placement still on? When is the closing date? Thanks.