Okitipupa oil palm Set to Raise N3.5bn Through Rights Issue

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Okitipupa Oil Plc, which is currently undergoing recapitalisation, is set to raise N3.5 billion by issuing rights to its existing shareholders. This move is said to translate to 382 million shares at N9.00 per share.

The Managing Director of one of the largest agribusinesses in Nigeria, Taiwo Adewole, said that the right issuance was one of the company’s significant steps in bringing about transformation; noting that the funds will be deployed to new technology, which will further drive the business. He said this during a signing ceremony at the Issuing House.

“While we are one of the largest agribusinesses in Nigeria today, we believe that a major role or milestone has been reached in our recapitalisation programme, which we started a few years ago. We have gone through the various approval processes.

“We will create the right environment for the company to have greater revenue or greater profitability. I believe in what we have done in the last four years. Okitipupa Oil Palm Plc is set for a great performance, and a good share of the market in the oil palm value chain,” Adewole said.

Adewole further assured the company’s shareholders of a return on their investments as the agribusiness is a good venture with a promising future, also with the strategic development and growth plan of the management of the company.

“When we came in 2018, the company was in total comatose with no hope for the future. But today, we want to thank God that it has become a totally different company. It holds promise for the future because the result that is coming out today is totally different. The various strategies and drastic decisions we have taken in the last three years have paid off with great results.

“Also, because of the huge illegality going on in our plantations, with the support of the Ondo State government that provided the required security, we were able to have some measures of control of the plantations, which prior to our arrival had been totally taken over by illegal harvesters; some of whom even set up illegal mills close to some of our plantations,” he noted.

With regards to making profit, Adewole said in 2020 that there would be a change in strategy. “These strategies were very novel, but at the end of 2020, our results have shown us that we were right with the strategy we adopted. We had over a 200 per cent return on revenue, and for the first time, the company reported profitability that was enough to wipe out 12 years of consistent losses. This for us was monumental,” he said.

The Issuing House, Greenwich Merchant Bank, was optimistic about the right issuance as the handling officer; Oluwatobiloba Kuye, said that the company is expected to operate profitably having received regulatory approvals, and with the right issuance.

“They have been trying to recapitalise for a while now. We have been in and out of the Securities and Exchange Commission (SEC) trying to get the necessary regulatory approval to take the company to market.

“I’m very happy that we are doing the sign-in ceremony now, and we’re hopeful that the shareholders will buy into the vision and ideas that the company has put forward so that the company can operate profitably,” he said.

 

 

 

 

 

 

 

 

 

 

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