Abdul Samad Rabiu earned the second-richest man spot after listing the BUA foods plc shares on the Nigeria exchange. His worth soared by approximately $1.9 billion.
This changed the billionaire’s net worth from $5.3 billion to $7.2 billion, displacing Mike Adenuga, the Globacom founder. Before Rabiu overtook him, Adenuga was the second-richest man in Nigeria with a net worth of $6.6 billion.
BUA Group, a well-diversified manufacturing company and the consolidated food company owners, was valued at N720 billion ($1.74 billion) after listing 18 billion shares at N40 ($0.0968) each.
In December 2021, BUA Group consolidated its foods company – BUA Sugar Refinery Limited, BUA Rice Limited, BUA Oil Mills Limited, IRS Flour, and IRS Pasta.
Later, the food company’s stock rose 10% higher than the predicted price from N40 ($0.0968) to N44 ($0.1065). This increased the market capitalisation of the food company to N792 billion ($1.92 billion).
In light of this, BUA Foods overtook Nestle Nigeria Plc, the Nigerian subsidiary of the Switzerland consumer goods behemoth Nestle S.A., as the largest consumer goods company by market capitalisation.
The listing of the shares, according to Rabiu, will help people understand the entire value chain of the firm and aid in the relief of Nigeria’s food crisis. Also, its merging will help the company preserve its leadership position in the agriculture and food processing industries.
Rabiu said; “many people do not know the size of this business; that is why we decided to merge all the food businesses into one entity. Now that we have done that, people will understand and appreciate the business.
I am delighted that yet another member of BUA Group has been listed on the NGX. This shows our commitment to national economic growth and support for the food security drive of the nation in alignment with global sustainability goals.
We appreciate the continued support of our stakeholders – financial advisers, stockbrokers, suppliers, customers, consumers, and staff members. In particular, we cherish our host communities with whom we continue to entrench very strong and mutually beneficial relationships.”