Otedola to Sell Shares of Its Electricity Company, Geregu Power, to Nigerians, adds N250bn to Stock Exchange
- Nigerians now have the opportunity to become co-owners with Femi Otedola as he lists his electricity company, Geregu Power Plc, on the Nigeria exchange
- Geregu power is the latest investment bet of the Nigerian billionaire after he sold his oil company, Forte in 2019
- The move makes Geregu Power the first power company to be listed on the Nigerian exchange
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Billionaire Femi Otedola officially listed his electricity company, Geregu Power Plc, on the Nigerian exchange.
The development allows the public to become part owners by buying the company’s shares for N100 per share.
Geregu Power plc is one of Nigeria's major power generation companies (Genco), and Otedola has stated that it would be his primary business focus, BusinessDay reports.
Source: Getty Images
Otedola makes history
Premium times reports that Geregu Power Plant will sell 2.5 billion ordinary shares of 50 kobo each, with the opening selling price placed at N100 per share.
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Following the successful listing, Geregu Power has become the first electricity company- generation, transmission, or distribution -that will be listed on the Exchange in Nigeria’s history.
Where to buy shares of Geregu Power
For Nigerians interested in investing, the stockbrokers lined up for the share sale are: Vetiva Securities, Limited; Apel Asset and Trust Limited; APT Securities and Funds Limited; and Cordros Securities Limited.
Others are Crossworld Securities Limited, Dynamic Portfolios Limited, Signet Investment and Securities Limited, and TRW Stockbrokers Limited.
Vetiva Capital Management Limited; and Kairos Capital Limited are the Issuing House(s)/Financial Adviser(s).
Expert view
In response to the listing, in a note, Victoria Ejugwu, an economist at Vetiva Research, expressed confidence in the company's shares performing well on the Nigerian exchange.
Part of the note reads:
"Looking ahead, given that demand for power has historically never been met, and with current generation data suggesting that supply remains far less than demand, we see the company’s turnover maintaining a positive growth trajectory in the medium term
"We also believe the ongoing infrastructural development that includes upgrading the transmission line is a positive for the company, as there is a huge prospect of significantly increasing supply.
"The Federal government also struck a deal with SIEMENS to upgrade the transmission capacity to 7000MW, and implementation is already ongoing, evidenced in the July purchase of 10 mobile transformers and sub-stations.
"What this means for Geregu is that raising generation capacity in the mid- long term is very feasible.
"Conclusively, with an expected uptick in demand given the rising urbanization rate (world-bank projects 4.23% annually), an expanding population (World-bank projection of 2.7%), and the prospects of an improved grid, we believe the company’s prospects of delivering strong growth in the mid-long term is solid."
Investors are in tears as over N3 trillion worth of bitcoin is wiped out in less than 24 hours
Legit.ng has reported that cryptocurrency investors suffered a major blow on Saturday after Bitcoin, and other coins dropped in value by over a billion dollars.
This happens as global investors sold off their coins to settle for secure investment options as Christmas day neared.
Bitcoin, the largest cryptocurrency by market value, plunged by 31.6% from the year’s high of $69,000 reached on Nov. 10.
Source: Legit.ng
