Geregu Power Plc (GPP) on Wednesday became the first power generating company in the country to be admitted into the Mainboard of the Nigerian Exchange Limited (NGX) by way of listing by Introduction (LBI).
The company, majorly owned by Billionaire businessman, Femi Otedola’s 2.5 billion ordinary shares of 50 kobo each at N100 per share were admitted on the Exchange.
The listing of Geregu’s shares has added N250,000,000,000 billion to the market capitalisation of NGX and further boosted liquidity in the Nigerian stock market and providing opportunities for wealth creation.
On its first trading day on the NGX, Geregu Power’s share gained 10 per cent to close at N110 per share from the N100 per share it was listed by introduction.
The gain pushed its market capitalisation to N275 billion from the N250 billion it was listed.
A total of 8.5 million shares of Geregu worth N935 million was traded in one day as its listing further boosted liquidity in the Nigerian capital.
To mark the significance of the listing, a closing gong ceremony was being planned for the last week of October 2022
The company had appointed the accounting firm of PriceWaterhouseCoopers (PwC) in June 2022, as auditors and also brought on board Paul Miyonde Gbededo, former Group Managing Director/CE of Flour Mills of Nigeria into its board.
the Executive Chairman, Board of Directors, GPP, Femi Otedola, stated that “the listing of the company 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, “listing on the Main Board of the Exchange will ensure that the long-term growth of the company is assured and its benefits will be passed on to our esteemed shareholders.”
Nigerian Exchange Limited continues to evolve in order to remain an attractive destination for issuers, meet the needs of our valued stakeholders and achieve the highest level of competitiveness.
Commenting on the development, the Chairman, NGX, Abubakar Mahmood said, “We are particularly pleased that Geregu Power has joined the prestigious group of companies listed on our Main Board, which will differentiate it as a professionally run power company with high standards, having met NGX’s listing criteria.
“A Main Board listing is a sign of commitment to strong corporate governance, excellence, professionalism, efficiency in service delivery, and providing increased returns to shareholders. It is our expectation that the Geregu Power listing will encourage other power generation and distribution companies to list their shares on the Exchange, thereby opening the sector up to cheaper, long-term capital that will boost infrastructural development and value creation.”
On his part, the Chief Executive Officer, NGX,Temi Popoola, said, “Today’s (yesterday) listing is a promising development in the country’s power sector and we are delighted to welcome Geregu Power Plc to the Exchange. Having Geregu listed in our market is proof of 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. As a listing platform of choice, we are committed to working with companies at various stages of growth to explore the different opportunities in the capital market to meet their business objectives.”