• Saturday, June 15, 2024
businessday logo


Otedola’s Geregu gains 10% on first trading day

FEDA buys 5% of Geregu Power shares at undisclosed price

Nigerian Exchange Limited (NGX) on Wednesday, October 5 listed by introduction Geregu Power Plc (GEREGU) on the Main Board of The Exchange.

Amid high investors’ demand, Geregu Power’s stock gained 10 percent (N10) on its first trading day on the NGX to close at N110 per share from N100 per share it was listed by introduction. The gain pushed its market capitalisation to N275billion from the N250billion it was listed

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.

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 has added N250billion to the market capitalisation of NGX, further boosting liquidity in the Nigerian capital market and providing opportunities for wealth creation.

The leading power generation company traded 8.5 million volumes of shares at N935 million in one day as its listing further boosted liquidity in the Nigerian capital.

To mark the significance of the listing, a closing gong ceremony was being planned for the last week of October 2022.

The company had appointed the accounting firm of PriceWaterhouseCoopers (PwC) in June 2022, as auditors of the firm; and also brought on board Paul Miyonde Gbededo, former Group Managing Director/CE of FMN onto its board.

Speaking on the listing, the Executive Chairman, Board of Directors, GPP, Femi Otedola, stated that, “the listing of the company was the actualisation of a vision to bring world-class standards in governance, sustainability, and business processes to the company and the Nigerian electricity sector.” He added that, “listing on the Main Board of the Exchange will ensure that the long-term growth of the company is assured and its benefits will be passed on to our esteemed shareholders.”

Read also: Geregu Power lists on NGX Main Board

Nigerian Exchange Limited continues to evolve in order to remain an attractive destination for issuers, meet the needs of our valued stakeholders and achieve the highest level of competitiveness.

Commenting on the development, the Chairman, NGX, Abubakar Mahmood said, “We are particularly pleased that Geregu Power has joined the prestigious group of companies listed on our Main Board, which will differentiate it as a professionally run power company with high standards, having met NGX’s listing criteria.

“A Main Board listing is a sign of commitment to strong corporate governance, excellence, professionalism, efficiency in service delivery, and providing increased returns to shareholders. It is our expectation that the Geregu Power listing will encourage other power generation and distribution companies to list their shares on the Exchange, thereby opening the sector up to cheaper, long-term capital that will boost infrastructural development and value creation.”

On his part, the Chief Executive Officer, NGX, Mr. Temi Popoola, said, “Today’s (yesterday) listing is a promising development in the country’s power sector and we are delighted to welcome Geregu Power Plc to the Exchange. Having Geregu listed in our market is proof of NGX’s commitment to building a robust and inclusive market and creating avenues for sustainable investment.

“This listing will enhance liquidity for Geregu, increase its visibility among global investors, elevate its value and boost transparency, as our marketplace is a sterling platform for raising capital and enabling sustainable growth for national development. As a listing platform of choice, we are committed to working with companies at various stages of growth to explore the different opportunities in the capital market to meet their business objectives.”

Beside Otedola, the Board of Geregu Power is made up of eminent Nigerians that are committed to corporate governance.

Otedola joined the board of GPP as Chairman of the Board of Directors in November 2013. Prior to this, he was the Chairman of the Board of Directors of Forte Oil Plc (now Ardova Plc) from May 2007 to June 2019. His vision transformed Forte Oil Plc into one of the highest performing companies on NGX. The company grew in leaps and bounds to become a model of the possibilities inherent in Nigeria, winning numerous accolades in recognition of the successful business turnaround, prompt financial reporting, strong corporate governance and investment of choice within the Oil and Gas Industry and NGX.

In 2019, with a firm belief in the power reforms of the federal government and overall vision “to be the leading provider of integrated power in the region”, he made a very strategic decision to sell his majority stake in Forte Oil Plc and invest in developing the power industry in Nigeria through the acquisition of a majority stake in GPP, via an investment vehicle called Amperion Power Distribution Company Limited.

He has held several board memberships including President of the Nigerian Chamber of Shipping and as past Chairman of Transcorp Hilton Hotel, Abuja.