• Friday, June 21, 2024
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Geregu Power set to go public at N100 per share

Otedola sells stake in Transcorp 15 days after acquiring shares

Geregu Power plc, one of Nigeria’s major power generation companies (Genco) owned by billionaire businessman, Femi Otedola is set to list on the Nigerian Exchange (NGX), BusinessDay learnt.

The development allows the public to become part owners by buying the company’s shares for N100 per share.

“Geregu Power Plant will now be listed on the Nigerian stock exchange. Over 2.5 billion ordinary shares of 50 kobo each will be listed on the equity market, with the opening selling price placed at N100 per share,” sources confirmed to BusinessDay.

The move makes Geregu Power the first power company in Africa’s largest economy to attain listing status even though Tony Elumelu-backed Transcorp Nigeria, already listed on the NGX, has power as one of its key focuses but not as a separate listing.

The listing is scheduled to take place on Wednesday 5th of October 2022 in a short ceremony at the Nigeria Exchange Commission (NGX). The event is expected to be attended by top executives of Geregu Power plc.

After a successful listing, Geregu Power will be the first electricity company- generation, transmission, or distribution -that will be listed on the Exchange in Nigeria’s history.

Findings by BusinessDay showed Geregu Power reported an increase in revenue to the tune of N70.9 billion in 2021 which represents 32.3 percent year-over-year.

The firm’s Profit after tax stood at N20.5 billion, representing an increase of 45.2 percent when compared to N14.1 billion made in 2020.

Read also: Electricity: Energy Experts caution against “multiple regulators” in power sector

It will be recalled that Geregu Power had earlier completed the issuance of a N40.01 billion bond in July 2022.

The bond which commenced on July 1, 2022, following relevant approval from the Securities and Exchange Commission (SEC) ended on July 14, 2022, with a bond yield of 14.50 percent.

Geregu Power later disclosed that the bond which was the largest corporate bond issuance by a power generation company in Nigeria’s capital market was oversubscribed.

About Geregu Power

Geregu Power plc was incorporated in November 2006 as one of the unbundled companies from the now-defunct Power Holding Company of Nigeria (PHCN).

The company began operations in February 2007, to generate electric power supply to the national grid managed by the Transmission Company of Nigeria (TCN).

Amperion Power owns 99.9 percent of the company. Calvados holding (owned by Femi Otedola) owns 95 percent of Amperion Power while Shangai Power owns 5 percent.

Otedola is the chairman of Geregu Power Plant while Akin Akinfemiwa is the chief executive officer.

Geregu Power will be the second company Nigerian billionaire; Femi Otedola will be listed on the Exchange.