FEDA buys 5% of Geregu Power shares at undisclosed price

Fund for Export Development in Africa (FEDA), the impact development arm of the Africa Export and Import Bank (Afreximbank) has bought 5 percent of Geregu Power Plc shares at an undisclosed price. This was disclosed in a February 21 notice to investors at the Nigerian Exchange Limited (NGX).

“The purchase of the shares was concluded today the 21st of February 2023 with the purchase agreed in on the 21st of December 2022. With this purchase FEDA now currently holds 5 percent of Geregu Power Plc Shares,” according to Geregu Power Plc in the notice signed by its Company Secretary, Akinleye Olagbende.

On October 5, 2022, the Nigerian Exchange Limited listed by introduction, Geregu Power Plc on the Main Board of The Exchange. A total of 2.5 billion ordinary shares of Geregu were listed at N100 per share, under the Utilities sector and Electric Power Generation sub-sector of NGX, with the trading symbol, GEREGU. Currently, the shares trade at a 52-week high of N246.4.

Geregu Power, a leading power generation company (GenCo) in Nigeria, is the first GenCo to be listed on the NGX Main Board, a listing segment for well-established companies with demonstrable records of accomplishments.

The listing of Geregu’s shares had added N250billion to the market capitalisation of NGX, further boosting liquidity in the Nigerian capital market and providing opportunities for wealth creation.

At the current price, the market capitalisation of Geregu Power Plc is about N616billion. The company had announced final dividend of N8 per share for the period ended December 31, 2022. The qualification date for the final dividend is on February 27, 2023.

Geregu Power last year listed its N40.09billion Series 1 Fixed Rate Senior Unsecured Bond (the Bond) on FMDQ Securities Exchange. The Bond was added on the FMDQ’s daily quotations and Listings Page on the FMDQ Exchange website after which the Bond was admitted for trading.

Iheanyi Nwachukwu

Iheanyi Nwachukwu, is a creative content writer with almost two decades journalism experience writing on banking, finance, capital markets, and tax. The multiple awards winning journalist is Assistant Editor, BusinessDay. Iheanyi holds BSc Degree in Economics from Imo State University; Master of Science (MSc) Degree in Management from University of Lagos. Iheanyi has attended several work-related trainings including (i) Advanced Writing and Reporting Skills (Pan African University, Lagos); (ii) News Agency Journalism (Indian Institute of Mass Communication {IIMC}, New Delhi, India); and (iii) Capital Markets Development and Regulations (International Law Institute {ILI} of Georgetown University, Washington DC, USA). Other trainings Iheanyi attended include: Economic/Political Risk Analysis (By Thomson Reuters Foundation); International Financial Journalism (IFJ) (By PMA Media Training, UK); Effective Business Writing Skills (By Phillips Consulting); Reporting on Corporate Governance (By International Finance Corporation (IFC) & Thomson Reuters Foundation UK); etc. In addition, he has participated in high-level economy & markets events in Dubai, South Africa, Morocco, and other African countries like Zambia, Ghana and Gambia.