More Good News For Otedola As His Company Value Crosses N1trn After He Rejoins Billionaire List
- Geregu Power Plant Plc is now a trillionaire company, joining the likes of FBN, UBA, Dangote Cement and others
- The company reached the milestone after a 7.52% rise in the share price as of market close on Monday, January 15
- This comes days after Femi Otedola was ranked the 4th richest man in Nigeria amid bullish Nigerian stock performance.
Legit.ng journalist Zainab Iwayemi has over 3-year-experience covering the Economy, Technology, and Capital Market
Geregu Power Plant Plc has joined companies that are worth over N1 trillion.
The company’s information on the exchange showed that its market capitalisation is now at N1.72 trillion at the close of trade on Monday, January 15, 2024.
Source: UGC
Femi Otedola is chairman of Geregu Power, a power generation business, and owns more than 70% of the shares.
Share price increases by 7.52%
The company, which opened at N399 per share, gained 7.52% during the trading hours on Monday. By market close, the billionaire company was valued at N429 per share.
With this, the company joined the tier-one bank and others on the list of valuable companies worth over one trillion in the country.
The companies are FBN Holdings, Access Holdings, GTCO, UBA, and Zenith Bank. The others are Dangote Cement Plc, MTN Nigeria Communications Plc, Airtel Africa Plc, BUA Cement Plc, and BUA Foods Plc.
Otedola ranked 4th richest man in Nigeria
Earlier, Legit.ng reported that Otedola was ranked the 4th richest man in Nigeria amid bullish Nigerian stock performance.
According to Forbes Billionaire Index, Otedola has a net worth of $1.2 billion after making over $6 million on Thursday, January 11, 2024.
Otedola is now behind only Aliko Dangote, Mike Adenuga, and Abdulsamad Rabiu on the Forbes Billionaire list of richest men in Nigeria.
The new development is expected to further increase the wealth of the billionaire who owns a large chunk in Geregu Power.
The noteworthy increase in Geregu's share price, according to Charles Abuede, a financial analyst, signals a considerable surge in investor confidence.
He said that the surge is indicative of positive sentiments regarding the company's financial performance, potential growth prospects, or strategic initiatives.
He added,
"By achieving a valuation that places it among the N1 trillion company group, Geregu underscores its substantial market capitalization and perceived attractiveness to investors, further solidifying its position in the market as a promising and valuable investment with positive returns to investors."
Otedola plans acquisition of another power company
Legit.ng also reported that Geregu Power Plc is reportedly planning the acquisition of Geregu II to shore up its generating capacity by about 434MW.
The firm is said to be gearing up to generate an estimated N31.24 billion, about $39.56 million in revenue during the first quarter of 2024.
The financial projection in the company’s published earnings forecast is a substantial leap from the N14,23 billion the firm earned in the same period in 2023.
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Source: Legit.ng
