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Nigerian business magnate Obafoluke Otudeko has gained N4.87 billion ($11.84 million) from his stake in Honeywell Flour Mills Plc, as shares in the integrated flour miller crossed the two-naira ($0.00486) mark for the first time in three years.
Otudeko owns a majority stake in Honeywell Flour Mills. His stake amounts to 5,294,363,565 ordinary shares, which he holds indirectly through Siloam Global Services Limited.
The million-dollar gain from his stake came off the back of a surge in the share price of the company in the past 72 days, as investors and bargain hunters acquired additional shares in the company in reaction to its financial performance.
Honeywell reported in the first quarter of its 2021-2022 financial year that its profit grew by 233 percent to N150 million ($364,521), from N45 million ($109,356) in the corresponding quarter of its 2020-2021 financial year.
This growth in profit was delivered by cost optimization strategies and a 25-percent increase in revenue from N26.4 billion ($64.16 million) to N33.06 billion ($80.34 million).
As of the closing of the Nigerian Exchange yesterday, Aug. 13, shares in the company were worth N2.05 ($0.0498), 9.63-percent higher than its opening price for the day.
Data retrieved from the Nigerian bourse revealed that shares in Honeywell Flour Mills have increased from N1.13 ($0.00275) on June 1 to N2.05 ($0.0498) on Aug. 13.
This translates to a gain of 81 percent for shareholders in 72 days.
The market value of his stake has increased from N5.982 billion ($14.54 million) to N10.85 billion ($26.38 million) between June 1 and Aug. 13.
Research conducted by Billionaires.Africa revealed that Otudeko’s stake in Honeywell has gained N4.87 billion ($11.84 million) in 72 days.
