Aradel stocks shed over N900bn in 17 days of listing

Aradel Holdings Plc, an integrated energy company which listed its 4.34 billion shares on the Nigerian Exchange Limited (NGX) Main Board about seventeen (17) days ago has lost approximately N901.7billion since its listing.

Aradel listing by introduction on Monday October 14 at N702.69 per share had boosted NGX market capitalisation by N3.05trillion.

As at Thursday October 31, the share price dropped to N495.10, indicating a decrease by N207.59 or 29.54 percent withing 17 days of its listing on the Lagos Bourse. The stock price had reached a record high of N850.1 after its listing before its recent drop to N495.10.

Aradel Holdings, a major player in Nigeria’s oil and gas industry, operates across the entire oil and gas value chain, with business interests in the exploration, production, and refining of petroleum products.

The listing had offered investors the opportunity to engage with one of Nigeria’s most diversified energy companies, positioning it as a key entity on the Exchange.

Read also: Aradel to pay N34.8bn interim dividend less than a month after listing

The difference between listing by way of introduction and a regular Initial Public Offer (IPO) is that no new shares were issued, but the existing shareholders of the company applied to the NGX to list their old shares.

For Aradel Holdings, existing shareholders were provided with the opportunity to sell to the public leveraging the platform of the Nigerian Exchange Limited.

Aradel Holdings recently announced that it will pay an interim dividend of N8 per share, representing a dividend payout of N34.8 billion for the nine months (9M) to September 30, 2024.

The dividends will be paid to shareholders whose names appear on the shareholders register as of November 20, 2024. The move by Aradel to pay dividend comes two weeks after the group listed on the Nigerian Exchange (NGX).

The proposed interim dividend for 9M 2024 is 433 percent higher than the N6.5 billion interim dividend distributed by the group in 2023. In 9M 2024, Aradel Holdings posted a net profit of N110.6 billion, marking a 477 percent year-on-year growth from the N19.2 billion recorded in the corresponding period in 2023. Hence, the dividend distributed for the period represents a dividend payout ratio of 31 percent.

In FY 2023, Aradel paid a total dividend of N43.4 billion, representing an interim dividend of N30 per share and a final dividend of N170 per share for its 217.2 million ordinary shares of N10 each.