Fakoyejo OlalekanInvestors queued to have their hands on the shares of Geregu Power on Wednesday, as the electricity power plant company debuted on the Nigerian stock exchange.
Interest were high for Geregu Power shares, resulting to the firm’s stock appreciating in value by 9.91 per cent. This indicated demands were coming in droves after it listed 2.50 billion shares.
Prime Business Africa had reported that Geregu Power plans to list 2.50 billion on the equity market of the Nigerian Exchange Limited (NGX), with each share sold for N100.
Following the share placement, high demands drove the stock value up to N120.9 kobo per share between Wednesday and during trading on Thursday.
About N20.9 kobo was added to the opening price of N100 per share. On Wednesday, Geregu Power share had closed trading with N110.
This led to Femi Otedola, Chairman of Geregu Power and other shareholders gaining N52.25 billion as at the time of filing this report, as the firm’s market valuation rose to N302.25 billion, from the N250 billion it was estimated before listing.
Meanwhile, Otedola had stated that, “the listing of the company was the actualization 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.”
Otedola had listed the shares of Geregu Power amid plans to buy another power plant to increase the operating capacity of his company. His firm, Amperion, the majority shareholder of Geregu, was selected by the Federal Government to bid for one of the five power plants.
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