Okitipupa Oil Palm Plc, in Ondo State, has listed its shares on the NASD OTC Securities Exchange, paving the way for the investing public to buy into the agricultural company.
The latest listing on the NASD came after the company was delisted from the Nigerian Exchange (NGX) and several decades of instability and near liquidation.
Regulatory filing at the weekend indicated that a total of 115.32 million shares of Okitipupa Oil Palm were listed at N9.26 per share, indicating entry market capitalisation of N1.08 billion.
Okitipupa Oil Palm, founded in 1968, produces palm oil and kernels into various products including crude palm oil, technical oil, pharmaceutical sterin, palm wine, brooms, seedlings, ashes and brown soaps.
Okitipupa Oil Palm was established to serve oil palm estates scattered across the three local governments of Okitipupa, Irele and Ese-Odo in Ondo.
After nearly three decades of instability and near liquidation, Okitipupa Oil Palm had returned to profitability in recent years as the company continues to implement its recovery plan.
Some N1 billion had been spent on balance sheet restructuring to clear outstanding debts while pursuing an ambitious plan to put the company on the path of profitability.
Outstanding liabilities of about N800 million owed as at March 2018 by the previous management, including land owners peppercorn rent for 31 years had been fully paid under a new cash management system introduced by the new board of the company.
Part of the company’s growth plan included a five-stage full resuscitation. These included full plantation repossession and rehabilitation phase, development of its existing 5,800 hectares of a new green field, replanting of 9,000 of brownfield, upgrading of its 40 metric tonnes per hour mill at the company’s headquarters and the 4.5 metric tonnes per hour mill at Ipoke as well as development of refining capacities.
The company’s annual turnover increased from N260 million in 2017 to about N2 billion in 2023. Profit also rose from a modest N38.6 million in 2017 to about N1 billion in 2023.
Managing Director, Okitipupa Oil Palm Plc, Mr Taiwo Adewole has said the company has been working assiduously to substantially liquidate most of its debts.
He said the company was on the way to being a key player in the agribusiness sector.
He said the company has embarked on some measures aimed at re-strategising and putting the company on a solid footing to enable it respond effectively to emerging challenges and return to its past leading role in the industry.
He said the company was working with partners to run its plantations, as well as meet other critical business needs, adding that the investment demonstrated confidence in the local economy and the future of the sector.
He noted that there is great potential for Nigeria in the palm oil sector, adding that the company was ready to demonstrate to the rest of the world that palm oil can be grown competitively.
