Geregu Power Plc, a power generation company in Nigeria, has crossed the N1 trillion market capitalisation threshold, joining an elite club of publicly traded companies in the country.
At the close of trading on Monday, the company, listed on the Nigerian Exchange Limited, appreciated by 7.52 percent to close at a share price of N429, thus giving it a market capitalisation of N1.07 trillion.
This achievement underscores the growing confidence in the sector’s potential and Geregu’s strategic positioning for success.
The majority shareholder of Geregu Power Plc, 40 million units of the power company’s shares valued at about N14.57 billion were traded in three trading sessions this December.
According to notices on insider trading filed with the Nigerian Exchange Limited on Thursday, the transactions took place on December 21, 22 and 27 in Lagos.
One of the transactions involved five million shares, which were traded at N360.30 per unit. The deal took place on December 21.
The next deal took place on December 22 and involved 18.22 million units at N360.20 per unit. The last transaction was on Wednesday in 2023. It involved the exchange of 16.77 million units of Geregu shares at N370 per unit.
Last October, Geregu Power said the estimated cost of its next major gas turbine overhaul is N27 billion.
This was revealed in its Unaudited Interim Financial Statements for the period ended September 30, which was filed with the Nigerian Exchange Limited.
The power-generating firm in its reports said, “The next major overhaul is estimated to cost N27 billion, 50 percent of the estimated costs will be financed from the cash generated from operations while the balance would be through debt. The sum of N4.961 billion is being used as cash collateral for the Letter of Credit established for the next gas turbine major overhaul.”
In its half-year financial report, Geregu revealed that it made advance payments of N8.78 billion to an Italian firm, Ansaldo Energia, for the overhaul of its gas turbine. As of December 2022, advance payment to the Italian firm was N4.616 billion
Also, Geregu said the net proceeds from its July 2022 N40.065 billion unsecured corporate bond, which was for a seven-year tenor and at a coupon and effective interstate of 14.5 percent and 14.70 percent, will be used used to finance the acquisition of one of the power generation companies which are currently in the final stage of bidding processes by the Bureau of Public Enterprises.