Billionaire Femi Otedola’s Geregu Power Gains $120 million 24 Hrs After Listing in NGX

Billionaire Femi Otedola’s Geregu Power Gains $120 million 24 Hrs After Listing in NGX

Billionaire Femi Otedola’s Geregu Power Gains $120 million 24 Hrs After Listing in NGX.

Billionaire Femi Otedola’s Geregu Power Gains $120 million 24 Hrs After Listing in NGX

Within 24 hours of its listing on the Nigerian Exchange (NGX), the market capitalization of Nigerian billionaire Femi Otedola’s Geregu Power Plc soared by more than $120 million, as both retail and institutional investors scrambled to acquire stakes in the leading power-generating company.

Within only thirty minutes of the power-generating company listing its 2.5 billion shares on the Nigerian bourse on Wed., Oct. 5, its share price increased by 10 percent, rising from N100 ($0.231) at the time of listing to N110 ($0.254) at the close of trading yesterday.

At the time of this report’s writing on Oct. 6, Geregu shares were trading at N120.9 ($0.279) per share, a 20.9-percent increase over the N100 ($0.231) listing price that they had at the time of their debut.

According to information compiled by Billionaires.Africa, the company’s market capitalization rose by N52.25 billion ($120.85 million) over the course of the previous day, increasing from N250 billion ($578.25 million) to N302.25 billion ($699.1 million) at the time this report was written.

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Analysts agree that the recent buying pressures on Geregu Power’s shares can be attributed to the strong valuation of the industry, which has allowed the power company to deliver double-digit growth over the last five years due to robust demand and increased output.

Following the listing, the company’s valuation could skyrocket as investment bankers, hedge funds, and private investors compete for stakes in the power generation firm, which is majority owned by Otedola through one of his companies, Amperion Power Distribution Company.

Vetiva Research, the research arm of Vetiva, a Lagos-based financial services firm, revealed that the company’s shares could reach N131 ($0.303) per share, highlighting its strong performance as it has seen consistent improvement in power output over the five-year period, indicating increased efficiency and improved utilization of its power plant.

Source | billionaires.Africa


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