Flour Mills Nets N35bn From Right Issue

Flour Mills of Nigeria said last Thursday that it successfully raised N34.97 billion ($220.80 million) in a rights issue of shares.

Shares in Flour Mills closed down 2.73 percent at 57.54 naira per share.

The rights issue was meant to raise 28.24 billion through the sale of 455.56 million ordinary shares at 62 naira per share, but shareholders bought 564.04 million shares in the offer, the company said, according to The Tide’s source report.

Proceeds from the issue are expected to be used primarily to finance the company’s food and cement business expansion, Flour Mill treasury director, Vlassis Liakouris told The Tide’s source in September.

Flour Mills in December raised N37.5 billion in five-year bonds, the first tranche of a N70 billion naira programme, Nigeria’s first corporate debt issue outside the banking sector in recent years.