Aradel Holdings lists on NGX, hits $1.9-billion market cap

Omokolade Ajayi -
Key Points
  • Aradel Holdings lists on NGX, boosting market cap to N3.053 trillion ($1.9 billion), with 4.34 billion shares at N702.69 ($0.43) per share.
  • The energy group transitions from NASD, now eligible for NGX Oil & Gas Index and NGX 30 Index, solidifying its market position.
  • Aradel projects 79.1% stock return with CardinalStone’s target price of N1,258.61 ($0.77), fueled by aggressive expansion and rising oil production.

Aradel Holdings, led by Nigerian businessman Ladi Jadesimi, has achieved a significant milestone by listing its shares on the Nigerian Exchange (NGX). The integrated energy group’s market capitalization surged to N3.053 trillion ($1.9 billion) after listing 4.34 billion shares at a price of N702.69 ($0.43) per share.

Aradel’s entry on the NGX qualifies it to join two prestigious indices — the NGX Oil and Gas Index and the NGX 30 Index, which tracks the 30 most valuable companies on the exchange. This listing expands investment opportunities for Nigerians, aligning with Aradel’s mission of enabling broader participation in the oil and gas sector.

“Today marks a historic milestone for Aradel as we list on the NGX,” said Aradel CEO Adegbite Falade. “This listing demonstrates our commitment to creating long-term value for shareholders and contributing to Nigeria’s economic landscape. As we embark on this new chapter, we remain focused on operational excellence, strategic expansion, and sustainable energy solutions.”

Transition from NASD to NGX marks new chapter

Founded in 1992 by the late Godwin Aret Adams, Aradel has evolved from Nigeria’s first integrated oil and gas investment company to a fully integrated energy group with operations spanning upstream, midstream, and downstream sectors. The company’s asset portfolio includes multiple oil and gas fields.

Aradel's journey toward public listing began with its initial debut on the NASD OTC Securities Exchange on Aug. 1, 2013. After establishing a track record of liquidity and transparent price discovery on the NASD, the company ceased trading there on Oct. 11, 2024, to facilitate its migration to the NGX.

Under Ladi Jadesimi, founder and executive chairman of the Ladol Group of Companies, Aradel reported a 260-percent rise in revenue for the first half of 2024, reaching N268.3 billion ($168.7 million). Its net profit surged to N104.4 billion ($65.6 million) from N13.1 billion ($8.2 million) in the same period last year.

Aggressive expansion strategy fuels growth

Aradel’s expansion strategy has seen it play a key role in the $2.4-billion acquisition of Shell’s onshore oil business in Nigeria as part of the Renaissance consortium. In May, the company celebrated its first oil production from the Omerelu Field.

The recent acquisition of the Olo and Olo West marginal fields in the Eastern Niger Delta further underscores its aggressive growth. These fields, formerly part of Oil Mining Lease 58, are set to be developed under Aradel Energy, pending ministerial approval and the completion of field development plans.

Aradel’s recent listing marks a new chapter, strengthening its position in Nigeria’s oil and gas sector and promising value for shareholders. CardinalStone, a Nigerian investment bank, has initiated coverage on Aradel with a 12-month target of N1,258.61 ($0.77) per share, forecasting a market capitalization of N5.47 trillion ($3.35 billion). The target implies a 79.1 percent return, underscoring the company’s growth potential.