Honeywell Flour Mills Jumps by 32% amidst Free Float Issue
Honeywell Flour Plc recorded a strong price uptick in the equities market as investors increased their positions in the food company’s shares amidst its free float compliance issue.
Share price increased by 31.5% over five trading sessions in the equities market, from N4.60 at the beginning of the trading week due to steep demand. Investors increased bets on Honeywell Flour Mills in the local bourse last week.
The bargain hunting was driven by pure sentiments and expectations that earnings would improve in the coming quarters. Also, Honeywell Flour Mills parent, Flour Mills of Nigeria, is planning to exit the local bourse after Excelsior Shipping acquired the largest share in the food company with an offer to buy out minority shareholders.
This could affect Honeywell too, some market analysts said, noting that Siloam Global Services Limited, a company associated with its erstwhile majority shareholder, Oba Otudeko, only owns 7.79%. With about 86% under significant shareholders, the company told the Nigerian Exchange it failed to meet free float requirements for companies listed on the main board in 2023.
In 2024, its 14.46% free float rate has not changed, and the stock price has been on holiday for a possible rally. According to data from the Nigerian Exchange, Honeywell Flour, which opened at N4.60 per share, ended the week at N6.05 due to bargain hunting.
The company’s value increased to N47.977 billion in the Nigerian Exchange platform after the latest market re-rating of the fast-moving consumer goods stock. The company rally had eased following its acquisition by Flour Mills of Nigeria. At the end of trading session,
Honeywell Flour Mills was trading at about 6% discount to its 52-week high. However, the stock has doubled down on its 52-week low of N3 per share. In 2021, Flour Mills of Nigeria Plc. bought a 5.06% equity stake owned by FBN Holdings in Honeywell as the company acquired 71.69% of Honeywell Flour Mills from its majority shareholder, the Honeywell Group.
Total substantial shareholding in Honeywell Flour Mills was 85.54% at the end of the second quarter of the financial year 2025, ending in September 2024. Honeywell Flour Mills Plc registered a free float percentage of 14.46% as of 30 September 2024, which was not fully compliant with the Exchange’s free float requirements for companies listed on the Main Board.
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