Kotco Energy

[faoogoke]

All,
I read the interview granted the M.D of thi company in yesterday's Daily Independent newspaper. He mentioned that they are doing a pp presently. Similar info can be found in today's Guardian.
Let's sniff around for more info. The pp is coming at a nominal value of N1.00

[hispy99]

Kotco Energy plans listing after fund raising
By Udeme Ekwere
Published: Monday, 15 Sep 2008
Kotco Energy Limited has set plans in motion to be listed on the Nigerian Stock Exchange.

The Chairman of the company, Chief Joseph Sanusi, said that at the conclusion of its planned private placement, the company would list its shares.

To this end, the company has received approval form its shareholders to shore up its capital base and to raise additional funds through private placement of 649,028,000 shares, of N1 each at N3 per share.

Speaking during an investors’ forum on Thursday, the chairman said the funds were to be utilised in placing the company in the category of world blue-chip companies.

He said, “There is the necessity to inject more funds and expertise into our operations, so that, in the future, it will be an enduring legacy.

“Also because of the success story we have, which is that far from the company having unsold stock, we cannot meet the demand of our customers, this will help us to put things in place to ensure that the company can meet the regular demand of its customers.”

Kotco Energy, which is involved in the manufacture of power and distribution transformers, was incorporated in 2002, to refurbish, assemble and ultimately manufacture power transformers in Nigeria.

According to the Chief Executive Officer, Mr. Kola Oyefeso, the company has been actively involved in the sourcing of tools, technical products, and distribution line materials, as well as in the repairs and maintenance of diesel generator plants and pumps for reputable power generating institutions.

He said the company seized the opportunity extended by its overseas partners and had established in Nigeria, a pioneer manufacturer of transformers.

He said, “Within a space of three years, we have fully mastered the transformer technology and our local engineers/technicians have acquired all the necessary knowledge to continue in the good work. We have also maintained the highest standard in all of our products.

“We are, therefore, embarking on the private placement so that our activities will be further boosted, and be brought into better limelight and we will be able to rise to the exigencies of the demand of our products.”

He also explained that with the funds, the company intended to contribute its own quota in assisting government to generate more employment for individuals.

[hispy99]

Energy firm, Kotco, targets N3 billion capital base
By Sulaimon Salau

POISED to expand its scope and participate more effectively in the nation's power sector, Kotco Energy Limited has unveiled it plans to increase its capital base to N3 billion.

The firm, which is presently involved in the manufacturing, servicing and supply of transformers to about six states of the federation, also plans to expand its clientele to other states and indeed, the entire West African electricity market.

To be able to achieve this among other objectives, Kotco has placed a private offer of N649,028,000 ordinary shares of N1.00 each at N3.00 per share. The pre-offer capitalisation stood at 1,112,916,000, while at the end of the offer, capitalisation at offer price is projected to reach 3,060,000,000.

Kotco has authorised share of N1,020 billion with issued and fully paid up share of N370,972,000 ordinary shares of N1.00 each.

Speaking at the investors' sensitisation forum in Lagos recently, the Chief Executive Officer (CEO) of the company, Chief Kola Oyefeso, said the offer is being undertaken to take advantage of business opportunities through investment in areas such as, Information Technology, business expansion, capital asset acquisition and working capital.

According to Oyefeso, the nation's power sector has been a very viable one considering the rapid development of the country, but the major challenge faced by the firm is the inability to meet its demand.

"With the view to raising the exigencies of the demands of our products, we decided that we should open up the business by inviting other capable hands to join hands with us, in our quest to seize the tremendous opportunity begging to be tapped in Nigeria. This explains our present position that necessitates the need for private placement, which in essence is inviting the good people of Nigeria to team with us, in our giant stride to raise the profile of our country from that of a mere consuming nation into the comity of industrialised nations of the world," he said.

As part of its commitment to ensure full manufacturing of transformers through indigenous hands in Nigeria, the Kotco boss said it has about 77 Nigerian engineers and technicians understudying its foreign partners in-country to be able to maintain the standards even with local manpower.

"We state with pride and thanks to our local ingenuity that, within a spate of three years, we have fully mastered the transformer technology and by fifth year, our local engineers/technicians have almost rendered the employees of our technical partners to mere on lookers. Their involvement has been reduced to that of overseers, ensuring the highest standard is maintained in every of our products." He stated.

Kotco's turnover in 2007 stood at N25 million with the record earnings of N10 million gross profit as against N8 million in 2006.

Return on turnover is projected to increase drastically from 1.10k in year one to 3.31k in year three.

The power firm's future plan for the sourced fund includes; to establish branches in all geo-political zones in Nigeria; to become a one-stop super shop for all accessories and spares of both power and distribution transformers; invest in solar energy, and automate its system by installing Wide Area Network to facilitate easier business processes.

[hispy99]

Kotco Energy N1.947 billion Placement still on
Posted Sunday, September 28, 2008

-As company projects N1.00 dividend in 2012 FYE



PETER OBIORA

Proshare NI

September 27, 2008 at 08: 46 GMT



Kotco Energy Limited N1.947 billion Private Placement (PP) that was due to close yesterday Friday September 26 2008 is still on.



A source at Independent Securities Limited who is part of the Agents to the Placement confirmed to Proshare NI that the Placement is still one irrespective of the official closure date of Friday September 26, 2008 as contained in the Placement Memorandum.



In order to raise N1.947 billion, the company currently engaged in the Manufacturing/Refurbishment of Power and Distribution of Transformers has offered by way of Placement 649,028,000 Ordinary Shares of N1.00 each at N3.00 per share.



Five years forecast of the Kotco made available to Proshare NI shows that the company is expected to grow its Turnover from N1.563 billion in year 2008 to N15.825 billion in year 2012; indicating a significant growth of 912 percent in the forecast period.



Profit before Tax (PBT) is also expected to rise from N337.594 million in year 2008 to N5.162 billion in year 2012 showing a rise of 1429 percent.



While Profit after Tax (PAT) has been projected at the same level with the PBT.



Kotco has also projected a dividend payout of 10, 20, 25, 50 and 100 Kobo in the year 2008, 2009, 2010, 2011 and 2012 Financial Year End (FYE) respectively.



Though the Memorandum affirmed that the dividend per share for year 2008 is based on the current paid up Share Capital of the company amounting to 370,972,000 Ordinary Shares of N.00 each.



While the 2009 and 2010 forecast are based on the proposed paid up Share Capital of 2,040,000,000 Ordinary Shares of 50 Kobo each and the 2011, 2012 are based on 3,040,000,000 Ordinary Shares of 50 Kobo each after the Placement.



However, Financial Summary Extracts from the Reporting Accountant’s Report shows that PBT of the company grew from N55.310 million in year 2004 to N25.533 billion in year 2007 indicating a growth of 46064 percent in the review period.



In the same vein, PAT also increased with the same level in the period under review.



While Turnover also rose from N198.042 billion in year 2004 to N288.711 billion in year 2007 representing a rise of 46 percent.



Without prejudice, as at the time of filling in this report, Proshare NI cannot confirm the above Financial Report of the company.



Kotco in the document affirmed that proceeds of the Placement would be used for business expansion, Capital Asset, working Capital and Information Technology (IT).



Joint Issuing House to the Placement includes Wema Asset Management Limited (WEMAASSET), Intercontinental Capital Markets and SanTrust Securities Limited.