Home » A $100,000 investment in Femi Otedola’s Geregu Power four months ago is now worth $219,000

A $100,000 investment in Femi Otedola’s Geregu Power four months ago is now worth $219,000

by Omokolade Ajayi
Femi Otedola

Geregu Power Plc, a top-performing power-generating company under the ownership of Nigerian billionaire Femi Otedola, has achieved impressive growth since its shares were publicly listed four months ago.

With a significant boost in its share price and market capitalization, Geregu Power is presently one of the best-performing listed companies in Africa in terms of year-to-date share price return.

As of the drafting of this report, the company’s market capitalization on the Nigerian Exchange is estimated at N547.5 billion ($1.19 billion), securing its position as the 10th most valuable stock on the Nigerian Exchange (NGX). Additionally, its remarkable 41-percent price increase this year places it among the top five in terms of year-to-date performance on the local exchange.

Since the listing of the company’s shares on the Nigerian Exchange on Oct. 5 under the Utility sector and Electric Power Generation sub-sector, the stock price has seen a remarkable increase of 119 percent, rising from N100 ($0.231) to N219 ($0.475) at the time of this report.

The substantial growth has brought in millions of dollars in profits for investors, with the majority of the power-generating company being controlled by renowned businessman, Femi Otedola.

120 days later, a $100,000 investment in Geregu Power is worth $219,000

Had local or international investors taken advantage of the opportunity to invest in Geregu Power on the NGX when its shares were publicly listed four months ago, they would have seen a remarkable 119-percent growth in their investment over this brief period of time.

Over the past four months, Geregu Power has experienced substantial growth in market capitalization, soaring from N250 billion ($542.8 million) on Oct. 5 to a remarkable N547.5 billion ($1.19 billion). This represents an increase of N297.5 billion ($646 million).

Femi Otedola’s Geregu Power sets milestone with audited results

Geregu Power has made a landmark achievement on the NGX by being the first publicly listed company to timely release its 2022 audited financial report, setting a new standard in financial transparency and accountability.

The PwC-audited report, praised by both institutional and retail investors, led to a 40-percent year-to-date increase in the company’s shares.

Despite facing hurdles like vandalism to its gas pipelines, which caused a drop in revenue from $154.1 million in 2021 to $103.4 million, Geregu overcame these challenges with innovative solutions, effective risk management, and partnerships with key players, resulting in a profit of $22 million and maintaining its position as a leader in the industry.

According to analysis from an investment banker at a tier-one bank in Lagos, the value of Geregu shares is expected to soar beyond N800 ($1.73) per share in the near future.

The optimistic forecast is based on the company’s recent shortlisting for the acquisition of the Geregu II power station, a highly sought-after 507-megawatt natural gas facility located in Kogi State, Nigeria.

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