Prime Business Africa
Investors in the Nigerian Exchange (NGX), also known as the stock market, are snubbing Ellah Lakes’ shares — a situation that is affecting the investments of the palm oil company’s shareholders.
In December 2025, the company launched a public offer, with plans to raise N235 billion through the public and private placement; however, the exercise failed, with the company unable to secure the amount despite extending the timeframe by two weeks.
Join our WhatsApp ChannelEllah Lakes had conducted the public offer to use the capital raised to acquire Agro-Allied Resources & Processing Nigeria Limited (ARPN) from ARPN PTE Ltd, in a bid to improve its topline and recover from net losses, which will make it possible for the palm oil producer to pay dividends.
In a frequently asked questions (FAQs) obtained by Prime Business Africa, the company said it could not raise the capital because Ellah Lakes was not a sought-after share among retail investors, and the palm oil producer’s lack of a dividend track record, which indicates the company struggles to constantly create wealth for its shareholders, discouraged institutional investors from buying the company’s shares.
Retail investors are individuals buying shares, while institutional investors are banks, pension funds, and hedge funds that buy and manage large shares for others.
Amid the disappointment faced by Ellah Lakes in the stock market, the value of investments held by the company’s shareholders has depreciated by 21.73 percent year-to-date, according to Prime Business Africa’s analysis, indicating a bearish sentiment towards the palm oil producer.
The share price of the company has fallen amid intense selling pressure, from N13.80 kobo per share on January 2, to N10.80 kobo on February 25, with equityholders still holding shares of Ellah Lakes recording a N11.57 billion combined unrealised loss.
With the share price declining by N3 within two months, Ellah Lakes’ market valuation has also nosedived, dropping from N53.24 billion to N41.66 billion during the same period, according to Prime Business Africa’s analysis.
It was gathered that while Ellah Lakes’ shareholders lost 21.73 percent of their investment, shareholders in the company’s market rival, Presco and Okomu Oil, recorded 59.68 percent and 61.18 percent growth in their investment value, respectively.
The analysis showed that while Presoc’s shareholders recorded a combined gain of N1 trillion, the company’s market capitalisation increased from N1.69 trillion to N2.70 trillion.
Also, the shareholders of Okomu Oil gained N639.11 billion combined, while the company’s market valuation in the Nigerian stock market surged from N1.04 trillion to N1.68 trillion
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Prime Business Africa is a business, economy and policy news platform founded in 2021 by veteran journalist and media scholar, Dr Marcel Mbamalu, after he left The Guardian as Editor.
Dr Mbamalu, who serves as Founder and Publisher, set up Prime Business Africa to deliver sharp, data-driven reporting on Nigeria’s markets, trade, investment, and governance trends for decision-makers, entrepreneurs, and policy leaders.
He also writes The Bottom Line, a backpage column for Punch Newspaper every Thursday.
Under his leadership, Prime Business Africa combines deep newsroom experience with a focus on accountability journalism, aiming to bridge information gaps between Africa’s private sector and the global economy.
