Prefab Housing Entering Strong on the Ethiopian Market

Addis Prefabricated Housing Manufacturing Industries SC, Ethiopia has sold 31.4 million birr in shares in just the three months exceeding its target capital goal of 29 million birr. The share company floated 29,000 ordinary shares at a value of 1,000 birr since the 16th of February and has attracted 773 investors so far.

The company extended the deadline it had set for selling shares from April 16th to the 20th of May following the demand seen on the market claimed Gezahegn Yayinshet, Chairman of the Board.  

The minimum share allotment for one investor is 25 and the maximum 500 shares. A 10% service charge is levied on investors and they are expected to pay 60% of total investment on subscription a further 20% is due three months after the general assembly and the final 20% will be paid another three months after the second allotment is paid.

In the past three months Addis prefab has concluded a procurement agreement to establish a light gauge steel factory with a company from the US and another deal to start a calcium silicate board factory with a Chinese company is in place as well as the company's efforts in selling shares to investors explained Gezahegn.

Addis Prefab was founded by six entrepreneurs who put up an seed capital of 900,000 birr. The company need 97 million birr in the first phase of operation and plans to raise the money from the sale of shares and through facilitating project loans.

Source: Capital