As the commencement date for the implementation of the cabotage law draws closer, an indigenous maritime company, Japual Limited, has concluded plans to raise funds from the capital market with a view to enhance its operations.

Managing Director of the company, Mr. Abiodun Jegede, weekend in Lagos, said that the company is going to the stock market in order to expand its financial base. He explained that the company has no foreign investors and knowing that it is difficult sourcing long term funds from the banking system due to its preference for short term funds, the capital market remains the only viable option.

Japaul, he explained, is basically a maritime company which commenced operations in 1997, rendering maritime services to Oil and Gas companies in the Niger Delta. Jegede said that they started with a small barge of 300 tons in 1997 but now have 18 marine equipment in its fleet including two Sea going vessels that are used for both towing and anchor-handling operations in the oilfield.

The Japual boss disclosed that, "the company has grown over time from having N18 million turnover in 1998 to a turnover of N435 million and net profit of N93 million as at December 2003." He however noted that the company has been ploughing back its profit into the business in the past to ensure its success.

The vision of the company he continued, "is to build a viable business that will not only outlive the promoters but make impact in the Nigerian maritime industry to the extent that it would command world attention in the area of shipbuilding and ship operations, oil and gas marine support services, and other maritime services."

According to him, "building ships is a very big dream but the company believes strongly that it could be achieved." He noted that the company has started with the building of a tug boat and would grow to the height of building ultra large vessels, including ones that can carry crude oil for this country.

Jegede disclosed that the company is putting together plans to raise money from the capital market and a change in the name of the company is being processed at the Corporate Affairs Commission (CAC). According to him "the proposed new name of the company is Japaul Oil & Maritime Services Plc."

In his words, "our financial advisors, NAL Bank Plc and Valueline Securities, are presently packaging the company for Public Offer. We are the first maritime company that will be listed on the stock exchange and any investor that will put his money in this venture now will be making a good decision because together we will raise a business empire that will beat the world's imagination. It is expected that the IPO (Initial Public Offer) will be concluded by July 2004."