By Dipo Olowookere
The share price of one of the leading cement makers in the country, BUA Cement, has been adjusted by the Nigerian Stock Exchange (NSE).
The change in the equity value of the company was carried out on Monday, September 28, 2020, after the dividend recommended by the board for the 2019 financial year was deducted.
The share price of BUA Cement had closed last Friday at N40.30 per unit, but after the value of the cash reward was removed, it dropped to N38.55 per unit.
For the 2019 accounting year, which ended on December 31, BUA Cement said it would reward its shareholders with a final dividend of N1.75 per unit and the qualification date for this was Friday, September 25, 2020.
In a notice to the market this morning, the NSE announced that it has modified the equity price of the company to the new value.
“The equity price of BUA Cement Plc was adjusted today, September 28, 2020, for [a] dividend of N1.75 as recommended by the company’s board of directors.
“The last close price was N40.30, while the ex-div price is N38.55,” the exchange said in the notification to stockbrokers at the start of trading activities on Monday.
In May 2020, BUA Cement released its results for last year and the board said every shareholder of the organisation will receive a dividend of N1.75 for every unit held.
As earlier stated, the qualification date for the BUA Cement dividend was September 25, 2020, while the closure of register is from September 28 to October 2, 2020, and on October 22, 2020, the company will hold its Annual General Meeting (AGM) at the Transcorp Hilton Hotel Abuja at 11am. The next day, the payment for the cash reward will be made.
In the 2019 fiscal year, the cement company grew its revenue to N175.5 billion from N119.0 billion, buoyed by sales of bagged cements from Nigeria, which is the firm’s main market.
Also, the profit before tax jumped to N66.2 billion from N39.2 billion, but the profit after tax depreciated to N60.6 billion from N64.1 billion, with the earnings per share (EPS) decreasing to N1.79 from N1.89.
Business Post reports that as at the time of filing this story, the share price of BUA Cement on the exchange 85 kobo or 2.21 per cent to N39.40 per unit.
Adedapo Adesanya