BUA Foods Plc, a newly consolidated food company launched by Nigerian billionaire businessman Abdul Samad Rabiu, is one of the leading companies on the Nigerian Exchange that have returned impressive gains for investors and equity traders since the year began.
So far this year, the company’s stock ranks as the best-performing stock on the Nigerian Exchange and as the most traded stock with more than 462 million shares in 1,061 deals in past weeks.
Nearly 12 days ago, the consolidated food business listed 18 billion units of shares on the local bourse at a price of N40 ($0.09675), giving the newly formed business a $1.73-billion valuation.
A review of the company’s performance on the Nigerian bourse revealed that its stock price has risen from N40 ($0.09675) 12 days ago to N66 ($0.1588) as of the time of the drafting of this report since the official listing of its shares on Jan. 5.
The surge in the company’s shares led to a 65-percent gain for shareholders since the start of the year.
The price bump caused the market capitalization of BUA Foods to increase from N720 billion ($1.73 billion) at the opening of the Nigerian Exchange on Jan. 5 to N1.19 billion ($2.86 billion) at the start of business this morning, Jan. 17.
A $10,000 investment in BUA Foods Plc 12 days ago is worth $16,500
Local or foreign investors with access to shares in BUA Foods on the Nigerian bourse would have seen a 65-percent gain since the year began if they had purchased shares in the company on Jan. 5.
This suggests that a $10,000 (N4.15 million) investment in BUA Foods on Jan. 5 is now valued at $16,500 (N6.86 million), which is about 65-percent higher than the initial investment.
Rabiu controls a majority 99.8-percent stake in the company and has seen the market value of his stake increase by N467.1 billion ($1.12 billion) in the past 12 days.
The billionaire derives a total net worth of N2.85 billion ($176.2 million) from his 99.8-percent stake in the food business. This has pushed his net worth above the $8-billion mark, making him the second-richest man in Nigeria, Africa’s largest economy.