Can we trust this Guy?
Dangote assures investors on Obajana Cement’s planned IPO
Following the huge amount of money returned to shareholders during the just concluded Initial Public Offering (IPO) of Dangote Flour Mills Plc (DFM), the chairman of the group, Alhaji Aliko Dangote has assured investors on the forthcoming IPO of its subsidiaries, Obajana Cement that it will ensure that minimal monies are returned to investors who partake in the offer.
Speaking in Lagos on Monday during the listing of DFM’s five billion ordinary shares of 50 kobo at N15 per share, Dangote expressed regret over the huge amount of money returned to shareholders stating that plans are at advanced stage to ensure that all the subscriptions by investors in the forthcoming offer are accommodated.
He said, “We are striving to ensure that in subsequent offer of our other subsidiaries, all the applications received are allotted. To this end, we are making sure that the size of the offer is very big so as ensure full allotment.
The processes leading to the offer are almost completed, but we will not divulge the commencement date yet. We regret the returned monies and the delay in distributing the monies to investors. We will ensure that it did not happen again in subsequent offers.”
DFM last year raised N18.75 billion from the capital market through an Initial Public Offer of 1.25 billion ordinary shares of 50 kobo each at N15 per share.
According to Dangote, the offer was 600 per cent oversubscribed, leading to its returning more than N100 billion to investors, thereby, making it the most successful IPO in the capital market in terms of percentage subscription.
The Managing Director of DFM, Dr. Michael Zetzstche, promised to pay dividends regularly to investors, promising to expand its operations beyond the present level, especially in its output and production capacity.
He commended investors for the confidence reposed on the company as evidenced in the over subscription, promising to be among the best company on the capital market in terms of returns on investment. - Vanguard
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