Geregu Power Plc, a power-generating company owned by Nigerian billionaire Femi Otedola, has seen its market capitalization on the Nigerian Exchange (NGX) surpass the $800-million mark, owing to renewed interest in the company’s shares.
The increase in its market capitalization above $800 million comes nearly four months after the Femi Otedola-led power-generating company listed 2.5 billion ordinary shares on the local bourse at a price of N100 ($0.231) per share in a public listing that gave the company a N250-billion ($579-million) valuation.
Since its listing on the Nigerian Exchange’s Main Board on Oct. 5, 2022, Geregu’s share price has seen a significant increase of 47.4 percent, rising from an initial value of N100 ($0.231) to a closing price of N147.4 ($0.32) on Thurs., Jan. 27.
The upward trend has also resulted in a substantial boost to the company’s market capitalization, which has grown by N118.5 billion ($222.5 million) from N250 billion ($578.2 million) to N368.5 billion ($800.7 million).
The surge in the company’s market capitalization can be attributed to the acquisition of a minority stake by The Fund for Export Development in Africa (FEDA), an investment platform of the African Export-Import Bank (Afreximbank), on Dec. 28, 2022, which has boosted investor confidence and created a positive outlook for the company’s future growth prospects.
Geregu Power, a leading player in Nigeria’s power sector, is majority owned by Otedola. The company operates three natural gas-fired units with an impressive installed capacity of 435 MW, contributing to a significant 10 percent of Nigeria’s total power generation.
Established in 2007 as a spin-off subsidiary of the now-defunct Power Holding Company of Nigeria, Geregu Power was acquired by Otedola in 2013 through his majorly owned Amperion Power Distribution Company.
The partnership between Geregu Power and FEDA is a significant move for both Nigeria’s energy sector and Africa’s industrialization and trade as a whole.
Furthermore, the transaction highlights FEDA’s commitment to supporting the growth and development of Africa’s energy sector, including the integration of renewable and transition fuels.