The Alternatives Securities Market (ASEM) board of the Nigerian Stock Exchange (NSE) has been boosted with the listing of 887millions shares of 50 kobo each at N0.85 kobo per share in the name of The Initiates Plc.
The waste management firm, which has diversified their operations to provide incineration services for the various sectors of the economy, is targeting about N1.8 billion by the end of 2020 financial year.
The Managing Director of the company, Reuben Ossai, addressing stockbrokers during the listing of the shares on the NSE in Lagos, explained that Africa has a very low market share of three per cent in waste. He added that the firm was poised to leverage the huge opportunities in the industry to grow the nation’s GDP.
He pointed out that listing by introduction of the company is part of the management’s strategic plan to promote inclusive growth, transparency and price discovery.
According to him, to ensure that the business is not overly exposed to the effects of falling crude prices, the company diversified its operations to provide incineration services, leading to a remarkable improvement in its revenue base reported in the most recent half-year numbers.
He noted that 21st Century Nigeria is expected to witness technological growth, increased urbanisation, private sector controlled economy and environmental awareness.
“These changes will be accompanied with increased waste yield and complexity, more public demand for environmental protection and waste management services. These changes stress the need for the revision and implementation of environmental laws and policies that will improve the commercial value of waste management services.
“Hence, companies involved in the waste management industry shall have a huge market to serve, making it a very profitable venture over the long term. The Initiates Plc seeks to develop these processes and remain a key player in the waste management industry,” he said.According to him, the listing would increase the firm’s global visibility and enable it to diversify venture capital holdings.
“The Initiates is dedicated to effective quality control, occupational and public safety and above all, sound environmental protection and acceptable corporate social responsibility.”
Ossai disclosed that the company commenced operations in 1997, providing consultancy services in the oil and gas industry through development of strong operational systems and tailor-made services to its clientele.
“Between 2007-2011, The Initiates Plc built and moved into its Industrial Complex, in addition to commissioning a Thermal Desorption Plant, thereby transitioning from consultancy services into Waste Management Facility Operation.
“In line with the company’s expansionary strategies, the company added two operational lines (Cleaning/decontamination unit and E-Waste Processing Plant), between 2012 and 2016, consolidating operations in the waste management industry.
“The new lines were built and fabricated wholly with materials and technical knowhow sourced locally in a bid to promote local production/fabrication and reduce reliance on foreign exchange,” he said.
He pointed out that for every $1 billion GDP, 1000 tonnes of hazardous waste is generated, adding that the projected Nigerian 2016 GDP of $415 billion is also expected to produce 415,000 tonnes of waste.