Fakoyejo OlalekanOnly five companies made it into the most valuable firms’ list at the end of business activities in 2022, out of the over three million companies registered in Nigeria.
The companies are members of the prestigious trillion-naira club. They are publicly-listed firms with over N1 trillion valuation in the capital market and are rated as the most valuable companies in the country by investors.
Companies in the N19 trillion club
At the end of last year, two telecommunications companies; MTN Nigeria and Airtel Africa, two cement manufacturers; Dangote Cement and BUA Cement, as well as one food producer; BUA Foods, made the trillion-naira club.
The five companies recorded a combined valuation of N19 trillion, out of the N27.91 trillion the Nigerian stock exchange market is valued by end of December 2022.
A check by Prime Business Africa showed that out of the trillion-naira companies, Airtel Africa is the most valuable firm with N6.14 trillion, followed by Dangote Cement’s valuation of N4.44 trillion.
The third most capitalised firm is MTN Nigeria with N4.38 trillion, BUA Cement grabbed the fourth spot with N3.31 trillion, while BUA Foods completed the list with N1.17 trillion.
How trillion-naira firms performed: Firms that gained, lost in 2022
- Airtel Africa: Gains N2.55 trillion
The network provider was listed on the Nigerian stock exchange on July 9, 2019, two years after it was incorporated. Airtel Africa is a leading telco, with 59.38 million telephony subscribers and 40.11 trillion internet users as of November 2022.
Airtel Africa offers data, voice, and other services, through which it generates $2.56 million at the end of Half-year 2022, surpassing the $2.27 million grossed same period in 2021.
The company started last year with N3.58 trillion market valuation, with its share price put at N955. Within 12 months, Airtel’s valuation rose by N2.55 trillion (71.20 per cent) to N6.14 trillion, with a share price of N1,465.18.
Prime Business Africa understands that the 71.20 per cent rise in market cap was enough for Airtel to Cement its position as the most valuable firm in the eyes of capital market investors.
- Dangote Cement: Gains N68.16 billion
The Cement company was founded by Africa’s richest man, Aliko Dangote. He incorporated the firm on November 4, 1992, but co-owned by the billionaire and the public.
Listed on October 26, 2010, Dangote Cement has grown to become the leader in the industry, recording a whopping N1.17 trillion in revenue from sales of cement to Nigerians and other African markets in 9month 2022, against the previous year’s N890.65 billion.
Just as the firm’s revenue surged in 2022, so did the company’s market valuation, as it recorded 1.55 per cent (N68.16 billion) gain within 12 months, rising from January’s opener of N4.37 trillion to N4.44 trillion.
- BUA Cement: Gains N1.03 trillion
BUA Cement is owned by an investor, Rabiu Abdulsamad. The company is one of the three non-foreign-owned firms in the trillion-naira club, having closed last year with N3.31 trillion market valuation.
The cement manufacturer, incorporated on October 24, 2014, began 2022 with N2.27 trillion capitalisation, however, growth in demand for BUA Cement share went up by 45.78 per cent, raising the firm’s capitalisation by N1.03 trillion.
During the 9-month period of 2022, BUA Cement reported it generated revenue of N262.59 billion, surpassing the N186.90 billion turnover the firm reported for the same period in 2021.
- MTN Nigeria: N366.38 billion
MTN Nigeria is the biggest telco in Nigeria by the number of subscribers, housing 86.43 million telephony users and 64.94 million data subscribers – all of whom account for the firm’s N1.45 trillion revenue in the first nine months of last year, which is more than the N1.20 trillion generated in 2021.
Note that MTN had started 2022 as the most capitalised telco with N4 trillion, but it could only manage 9.13 per cent growth in its share price which moved from N197 per share to N215 at the end of last year.
The 9.13 per cent rise in share price added N366.38 billion to the telecommunications company’s market cap, improving MTN Nigeria’s valuation to N4.37 trillion.
- BUA Foods: N378 billion
Although BUA Foods was incorporated on April 13, 2005, the company is the youngest among the trillion-naira firms, having listed on the stock exchange on January 5, 2022.
Last year January, BUA Foods was not among the trillion-naira club, as its market capitalisation was N792 billion, but the N378 billion it gained on the back of high demands among investors pushed it into the prestigious club.
The N378 billion represents 47.7 per cent growth in the company’s valuation, which closed last year with N1.17 billion, after demands for its share increased the stock value up to N65, from N44 per share.
The firm’s revenue also followed the same path, with BUA Foods reporting N289.81 billion in revenue in nine months of 2022, improving from the N241.07 billion generated between January to September 2021.
Note: Nestle started the year among the trillion-naira club, but it dropped out of the list after its valuation dropped by -24.76 per cent (N287.07 billion) from the N1.15 trillion it opened 2022 with, to N871.92 billion at the end of December last year.
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