By Meletus EZE
Notore Chemical Industries Plc on Thursday joined the league of quoted companies on the Nigerian Stock Exchange (NSE) with the listing of 1.61 billion shares by introduction at N62.50 per share.
Formerly O-Secul Fertilizer Company Ltd, Notore was established in 2005 to acquire the core assets of the National Fertilizer Company of NigeriaNigeria (NAFCON).
TBI Africa reports that the company with a market capitalisation of N100.75 billion was listed under the agro-allied & chemical sub-sector of the exchange.
Speaking on “Facts behind the listing” at the NSE in Lagos, Mr Onajite Okoloko, the company’s Group Managing Director, said the listing was to support the Nigerian government’s effort to deepen the capital markets.
Okoloko stated that the listing of the company would have significant value not only to the country but to the investment community.
He also said the listing would improve the liquidity and tradability of the company’s shares and increase its visibility and credibility in the Nigerian market and beyond.
Okoloko added that it would increase the company’s access to capital in order to fund its future growth initiatives. According to him, it will grant Nigerians the opportunity to participate in Notore’s growth story.
Okoloko said the company would continue to build a strong organisation that would support the agricultural sector by ensuring availability of good quality inputs and trainings to the local farmers.
He said the company had secured 37 million dollars funding for the execution of its Turn-Around Maintenance (TAM) programme aimed at restoring the daily production capacity to its 1,500mtpd design production capacity.
Okoloko said Notore’s urea plant presently produces an average of 1,000mt of urea fertiliser on a daily basis against 1,500mt production capacity.
He said the company sells 75 per cent of its urea fertiliser locally and exports 25 per cent to leading international fertiliser traders.
Okoloko said “upon completion of TAM programme in the second quarter of 2019, the plant’s daily production capacity is expected to be restored to its nameplate 1,500mtpd capacity.”
He also noted that Notore was expected to have an incremental production of approximately 150,000mt annually over its current average annual production of 300,000mt.
“Develop a 50MW gas-fired power plant and sell power in excess of the Notore’s requirement to the national grid through the Nigerian Bulk Electricity Trading (NBET) Plc.”
Speaking on the medium-term plan, he said that the company would develop new compound fertiliser blends specifically for key growth crops, expand its seed business and develop a crop protection business and as well expand fertiliser production capacity.
He said dredging activities were expected to commence on Notore’s privately owned jetty in 2019; increasing the jetty berth capacity from 15,000mt vessels to 25,000mt.
It would be recalled that Notore is a vertically integrated agro-allied, chemical and power business company based in Onne, Rivers State.
