By Dipo Olowookere
The share price of Geregu Power Plc appreciated by a maximum of 10 per cent on the floor of the Nigerian Exchange (NGX) Limited on Wednesday.
The power generating firm joined the local exchange today by listing by introduction a total of 2.5 billion units of its equities at a unit price of N100.00.
Business Post reports that investors developed a strong appetite for Geregu stocks at the bourse today. The value closed at N110.00 per unit at the close of trades, driving up its market capitalisation to N275 billion from N250 billion.
This further reinforced the value proposition for listing on NGX with the liquidity premium attached and exposure to a broad range of sophisticated domestic and international investors.
“Investors are quite optimistic about the value proposition of the company. The trajectory of its share price will be positive once the company has a good dividend yield and maximizes value for investors,” an industry analyst, who didn’t want to be named, said.
The chairman of Geregu Power, Mr Femi Otedola, believes that the company’s listing was the actualisation 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 joining the main board of the bourse would ensure that the company’s long-term growth is assured and its benefits would be passed on to shareholders.
As for the Chief Executive Officer of the NGX, Mr Temi Popoola, having Geregu Power at the stock market proves NGX’s commitment to building a robust and inclusive market and creating avenues for sustainable investment.
“This listing will enhance liquidity for Geregu, increase its visibility among global investors, elevate its value and boost transparency, as our marketplace is a sterling platform for raising capital and enabling sustainable growth for national development,” he said.
It will be recalled that the power company recently announced the successful issuance of its N40.085 billion senior unsecured bonds under its N100 billion multi-instrument issuance programme.
Also, the transaction, which represents Geregu’s debut bond issuance in the debt market, was over-subscribed. The issuance commenced on July 1, 2022, following the relevant approval of the Securities and Exchange Commission (SEC). It closed on July 14, 2022, with a bond yield of 14.50 per cent.
The CEO of Geregu Powe, Mr Akin Akinfemiwa, noted that the capital raise would significantly support the company’s capital investments.
“The resounding success of our debut bond offer demonstrates implicit confidence in our business by the investment community in our quest to increase capacity and contribute our quota to the Nigerian Electricity Supply Industry (NESI).
“It would help us in the attainment of our long-term corporate goals; market leadership, innovation, and commitment to the highest standards of environmental, social, and corporate governance,” he said.
