The Initial Public Offering of Honeywell Flour Mills Plc, targeted at raising over N18bn in fresh capital opened on Wednesday, Dec 3rd following regulatory approvals. The company is offering for sale to the public 1,252,941,177 ordinary shares of 50 kobo each and also offering for subscription 941,176,471 ordinary shares of 50 Kobo each at N8.50 per share.

This unique offer is being packaged by some of the leading issuing houses in the country, led by FBN Capital Limited and BGL Plc. A statement on Tuesday said the Honeywell Flour Mills hybrid offer had the approval of the Securities and Exchange Commission and the Nigerian Stock Exchange.

The tenor period of the offer is 29 days, opening on Wednesday, December 3, 2008 and closing on December 31, 2008.

Honeywell Flour Mills Plc is part of the Honeywell Group, an indigenous conglomerate, led by the Chairman, Mr. Oba Otudeko, Commenting on the offer, Otudeko was quoted as saying, “Obviously, we believe in the future of this country and one thing that is clear is that, this is the time to buy and what more, to buy the shares of a leading company, which has made feeding Nigerians its core business for many years.”
The entry of the company into the flour milling industry redefined industry standards, as its high quality products compelled an improvement in the quality of flour products by other players in the industry, the statement said.

Demand for Honeywell Superfine Flour has continued to grow exponentially, as evidenced by its turnover figure, increasing from N7.32bn in 2004 to N18.77bn for the year ended March 31, 2008.

You can download the prospectus and application forms here:
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