Notore Chemical Industries Plc Thursday listed N100.75 billion worth of share on the floor of the Nigerian Stock Exchange (NSE).
The agro-allied firm listed a total of 1.612 billion shares at N62.50 kobo per share under the Agro-Allied & Chemical sub-sector of the NSE.
Speaking at the fact behind the listing of the company in Lagos, the Chief Executive Officer of Notore Chemical Industries, Mr. Onajite Okoloko stated that the listing of the company will have significant value not only to the country but to the investment community.
He stated that this is to support the government effort to deepen the capital markets, improve the liquidity and tradability of the company’s share and grant Nigerians the opportunity to participate in Notore’s growth story.
He added that “we will continue with the company’s strategy in creating substantial value and build a strong organisation that will support the agricultural sector in growing the through the availability of good quality inputs and trainings to the local farmers.”
Okoloko noted that the company’s key strength lies in its huge potential to diversify its revenues due to its favourable location within a prolific gas hub and access to a jetty, which guarantees easy export of any products manufactured in the facility.
He stated that the company’s urea plant currently produces 1,000mt of urea fertiliser on a daily basis, saying that the company sells 75 per cent of its urea fertiliser locally and exports 25 per cent to leading international fertiliser traders.
He stated that the company has secured approval for $37 million funding to execute the Turn-Around Maintenance (TAM) program aimed at restoring the daily production capacity to its 1,500mtpd design production capacity, stating that, “we achieved 40 per cent EBITDA margin in full year 2017 and we are on course to achieve same in full year 2018.”
On the short-term performance of the company, according to the CEO, upon completion of TAM program in second quarter 2019, the plant’s daily production capacity is expected to be restored to its nameplate 1,500mtpd capacity.
He also noted that Notore is 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.”
While on the medium term, he said that the company will develop new compound fertiliser blends specifically for key growth crops, expand the company’s seed business and develop a crop protection business and to expand fertiliser production capacity.
He added that dredging activities are expected to commerce on Notore’s privately owned jetty in 2019, increasing the jetty berth capacity from 15,000mt vessels to 25,000mt.
“Leverage Notore’s free zone developer status to develop the proposed industrial complex into a gas hub and an integrated logistics service provider to the oil and gas sector”, he said.