DUNLOP SETS FOR CAPITAL MARKET
AS NSE APPROVES
N5.5BN OFFER
The Quotations Committee of the Nigerian Stock Exchange (NSE)
on Friday,17th November,2006 approved the proposed offer of
shares by way of rights and public offer for subscription of
tyre giant, Dunlop Nigeria Plc, to raise the sum of N5.5
billion from the stock market, paving way for the completion
of the pre – offer processes.
The approval was sequel to the compliance of Dunlop Nigeria
Plc and their professional advisers with the requirements of
the Nigerian Stock Exchange. The Quotations committee of the
NSE had scrutinised the offer documents and found that the
company had complied with the guidelines stipulated under
the rules of the exchange.
The Directors of Dunlop Nigeria Plc, their appointed issuing
houses and all other parties to the offer are expected to
formally sign off the offer documents at a Completion Board
Meeting later this week, following which the offer will open
next week.
Following the approval, Dunlop Nigeria Plc will be offering
some 1. 54 billion ordinary shares of 50 kobo each to the
general investing public through a public offer for
subscription at N2.50 per share and 756million ordinary
shares of 50 kobo each to existing shareholders at N2.30 per
share.
The issues further brighten the prospects of Dunlop Nigeria
Plc following commencement of commercial production at its
ultra – modern All Steel Radial Truck tyre plant (ASRT). The
introduction of the Supersteel tyres from the new factory
has already been making waves in the Nigerian tyre industry;
the radial truck tyre factory was commissioned by President
Olusegun Obasanjo on August 30, 2005.
Analysts also see recent changes in the management as a good
wind that would reinvigorate management and corporate
governance of the company, providing good background to the
current growth initiatives.
Mr. Mohammed Yinusa, the Group Managing Director, Dunlop
Nigeria Plc said the company is set to take its pride of
place as one of the best companies in the areas of
consistent and better returns. In his words, ‘’the ASRT
project is expected to double the company’s turnover and
increase the profit margins significantly, thus enhancing
returns to shareholders’’
Mr. Abiona Babarinde
Public Relations Manager
Mobile No; 0805-332-0910
Email: aababarinde@dunlopng.com
November 20th, 2006.
