Swazi Observer

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NPC SOARS BY 44% ON COLOSSAL PARTNERSHIP NEWS

By Nomfanelo Maziya | 2024-04-22

Nkonyeni Pre-Cast Limited (NPC) has witnessed a significant share price increase of 44 per cent to E1.44 per share, up from E1.20.

This jump in share price translates to a market capitalisation of E257 760 000. Trading activity was brisk, with 1 700 shares changing hands for a total value of E2 448.

This increase follows the company's strategic partnership with South Africa's Colossal Concrete Products (Colossal).

Colossal, a leader in railway sleepers with a 65-year legacy, is expanding its footprint into Eswatini.
This foray is marked by two key agreements with NPC.

Distributor
NPC becomes the official distributor of Colossal's concrete poles, masts, and railway sleepers in Eswatini, providing immediate access to these products for Eswatini's construction industry.

The two construction leaders signed a Memorandum of Understanding (MoU).
This paves the way for a feasibility study to explore a joint venture for a railway sleeper and concrete pole manufacturing facility in Eswatini.

The potential new plant is projected to create significant employment opportunities, starting with 20-30 jobs and eventually scaling up to 150 positions.

NPC Managing Director Marissa van Zuydam-Kunene said the collaboration with Colossal was a natural progression following the company's listing on the Eswatini Stock Exchange in November 2023.

“This listing aimed to fuel innovation, expansion, and technological advancements for NPC. Kunene emphasises that joining forces with a reputable leader like Colossal is a significant step in NPC's growth journey,” she said.

According to Colossal Executive Director Chris Klagsbrun, the partnership aligns perfectly with both companies' values of excellent customer service, quality and safe manufacturing practices. Colossal's world-class manufacturing technology, currently used in their South African facilities, will be implemented in the proposed Eswatini plant.

Companies
This venture will also enable both companies to capitalise on trade incentives and export opportunities available in Eswatini. NPC Board Chairman, Frans Pienaar, underscored the timeliness of this partnership.

“The Eswatini government's focus on economic growth and positioning the country as a hub for foreign investment creates a fertile ground for ventures like this.

The government's efforts to modernize logistics and infrastructure further enhance this attractiveness,” he said. While NPC enjoys a positive share price movement, other noteworthy changes in the Eswatini Stock Exchange were SWAPROP’s Share price which decreased by 5.06 per cent to E7.50 per share. Greystone Partners’ share price decreased by 2.88 per cent to E3.40 per share while SEL’s Share price increased by 2.63 per cent to E39 per share.

Other Listed Companies were did not witness any movements in share price, namely; NEDBANK Eswatini Limited (E14.50 per share) FNB Eswatini Limited (E14.83 per share), SBC limited (E8.90 per share), Inala Capital (E1.50 per share) and RES Corporation (E15.20 per share).

Market Update on Other Stocks
A brief overview of share price movements for other listed companies on the Eswatini Stock

Exchange:
n SWAPROP: -5.06 per cent decrease to E7.50 per share
n Greystone Partners: -2.88 per cent decrease to E3.40 per share
n SEL: 2.63 per cent increase to E39 per share
n NEDBANK Swaziland Limited: E14.50 per share (no change mentioned)
n FNB Swaziland Limited: E14.83 per share (no change mentioned)
n SBC Limited: E8.90 per share (no change mentioned)
n Inala Capital: E1.50 per share (no change mentioned)
n RES Corporation: E15.20 per share (no change mentioned).

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