$100,000 investment in Femi Otedola’s firm 6 months ago is now worth $320,000

Geregu Power, a leading power-generating company majority owned by Nigerian billionaire businessman and philanthropist Femi Otedola, has experienced robust growth on the Nigerian Exchange (NGX) since its initial public offering six months ago.

Bolstered by unwavering demand from retail and institutional investors, the company’s shares have soared by an impressive 223 percent on the NGX since debuting on Oct. 5, 2022. Since its listing, the company’s stock price has increased from N100 ($0.217) to N323 ($0.702).

This surge in the company’s shares has resulted in substantial profits for early investors and shareholders, and with a market capitalization that has now surpassed $1.7 billion, Geregu Power Plc ranks as the seventh most valuable company on the NGX.

A $100,000 investment in Geregu Power six months ago is worth $323,000 today

Investors who seized the opportunity to invest in Geregu Power on the Nigerian Exchange (NGX) when its shares went public six months ago would now be witnessing a remarkable 119-percent growth in their investment in just a brief period of time.

A $100,000 (N46.04 million) investment in Geregu Power when it was listed on the NGX is currently valued at $323,004 ($148.7 million), which is $223,000 (N102.6 million) more than the initial investment.

In the past six months, Geregu Power’s market capitalization has risen by N557.5 billion ($1.21 billion), from N250 billion ($543 million) on Oct. 5, 2022, to N807.5 billion ($1.75 billion).

Geregu Power shares expected to reach $1.7 per share, backed by expansion plans

An investment banker at a tier-one bank in Lagos has forecast that the value of Geregu Power Plc’s shares will surpass N800 ($1.73) per share in the near future, citing the company’s recent shortlisting for the acquisition of the highly coveted Geregu II power station, a 507-megawatt natural gas facility situated in Kogi State, Nigeria.

In line with Nigeria’s increasing energy demand and its ambition to become one of the fastest-growing power companies in Africa, Geregu Power has disclosed plans to enhance its power generation capacity from 435 megawatts to an impressive 1,300 megawatts, thus cementing its position as a rapidly expanding energy company.

Several institutional investors have taken note of Geregu Power’s growth potential and expansion plans, with The Fund for Export Development in Africa (FEDA), the impact development arm of the African Export-Import Bank (Afreximbank), recently acquiring a five-percent stake in the company.

The State Grid Shanghai Municipal Electric Power Company, the world’s largest power company, also holds a five-percent minority stake in the Otedola-led firm.