Since Omatek Ventures became a public company, traded on the floor of Nigeria Stock Exchange, it has failed to produce the type of numbers that will motivate any investor to put money in a tech company in Nigeria and exit through the public. Over the next coming weeks, Tekedia will be sharing insights on this company that has failed in the stock market. Trading at N0.50, it is basically a junk stock.
What happened to this company? Why couldn’t it execute? Why is the valuation so poor in the market? And why is the volume traded very abysmal? Tekedia Intelligence Lab will answer these questions. The company has a respected top leader in the person of Mrs. Florence Seriki. Yet, the returns we expect in this company have eluded her. What she can do and how she can help this company. Where are the talents for engineering innovation? Investors need more from her – 1,000 trades in average daily volume is very bad.
Innovation will save this company and that innovation could come from creating contents. Assembling is a challenging business because it does not offer price-differentiation, especially in Nigeria where government does not manage importation. Branding is another area Omatek has to do a lot of work. They must borrow a page from Lenovo and reinvent itself it it wants to come back to the game. Omatek is missing the new platform – it has to get into tablets; PCs will lose more market share in coming years. With prices of PCs so low now, they must become a service consulting IT company. The success will depend on the talent depth, but hardware is not a sustainable paradigm.
We introduce the company in their own words:
Omatek Computers originally started as a training outfit and progressed into executive training for bank executives and their counterparts from the Oil and Gas Sector. Omatek is especially known to have had a stint training staff of shell petroleum and the NNPC.
The transformation continued and in 1990 Omatek Ventures Limited as the company was then known became a vendor of some of the world- class computers such as Dell, Compaq, IBM, ACER etc .
As a result of the excellent sales performance achieved by Omatek Ventures, the company was appointed as a premium partner of Microsoft. Omatek was selling these products with annual sales revenue of over $1 million dollars.
In the course of time, Omatek metamorphosed from being a computer selling firm to a computer manufacturer. The need to continue to meet the minimum order quantity requirement of some of the best manufacturers in order to sustain production quality, led to the embrace of the SME scheme in partnership with Zenith Bank and Guaranty Trust Bank to:
- manufacture Casings, keyboards and Speakers from Completely Knocked Down (CKD) Components;
- produce the OMATEK brand of Computers, Notebooks and Servers
- export computers, casings and speakers within Africa and
- Generate employment opportunities in the IT Industry for youths.
Omatek recently exited the SME scheme through a Private Placement which has culminated in its listing on the floor of the Nigerian Stock Exchange-the first ICT Company in Nigeria to be so listed.
Today, Omatek has grown into a Group of Companies with the establishment of subsidiaries to strengthen its operations. Omatek Ventures Plc has therefore become the holding company for the subsidiaries namely:
- Omatek Computers Ltd
- Omatek Computers (Ghana)Ltd
- Omatek Ventures (Ghana) Ltd
- Omatek Engineering Services Ltd
- Omatek Ventures Distribution Ltd