The management of Nkonyeni Pre-Cast Limited (NPC) led by its Managing Director (MD) Marissa van Zuydam-Kunene believes that shareholders who will invest in the company stand to benefit immensely going forward.
The company intends to list and issue 50 000 000 ordinary shares, each with a nominal value of 100 cents, at an issue price of 100 cents per share. The company has stated in a press release that the minimum investment is E1000, and shares are available to everyone including, retail investors, SMEs, and big businesses.
NPC has also revealed that their application to extend their Initial Public Offering (IPO) has been approved, meaning the deadline is now the 20th of October 2023.
NPC recently hosted an Investor Webinar where the MD disclosed that their projections indicate that potential revenue post the IPO is earmarked at E90 million.
She, however, clarified that due to the fact that the company has lost 3-4 months without implementing the changes that will drive growth, they believe they will be able to generate E75 million in revenue in their first year post-listing on the ESE.
Worth noting is that the company generated E55, 5 million in revenue for the 2022 financial year.
The MD added, “Our projected revenues indicate that by year 2 we should generate E96,7 million, a total of E117,8 million in year 3, and E136 million in year 4, which indicates an average compounded growth of 21.23%. We are also happy to mention that independent valuers have valued the business at E179 million.”
Marissa further reiterated that the E50 million share capital will be re-invested in the business to ensure that it grows and expands.
Meanwhile, NPC Chairman Frans Pienaar also disclosed during the webinar that the company looks to pay a preferential dividend from year 3 of 10%.
“The current plan is not to pay a dividend in years 1 & and 2 but start paying dividends in year 3 to preferential shareholders. We will pay a 10% return for those shares. There is a possibility of paying a higher dividend if the company performs well beyond expectations, but that would be decided by the board,” he noted.
About Nkonyeni Pre-Cast Limited
NPC is currently the biggest manufacturer of concrete pre-cast products in terms of capacity and revenue in the country. The company was formed in 2007 and is an Eswatini-based company, established in Manzini, Sidvokodvo. For more than 15 years the company has been manufacturing and distributing concrete blocks, bricks, pavers, retaining blocks, and concrete roof tiles.
Nkonyeni Pre-Cast provides investors with exposure to a unique combination of investments, which are well-positioned for long-term growth in Eswatini and the region. Investors will be provided with exposure to the following investments:
- Manufacturing- concrete blocks, pavers, bricks, and roof tiles
- Retail- Hardware
- Construction- building
- Printing, Marketing and Promotional Material & Signage
- Water Engineering