GEREGU power firm lists on stock exchange

Add N275b to market cap, gains 10% on first trading day
Hope rose for improved market liquidity, yesterday, as Geregu Power Plc (GPP) was admitted into the main board of the Nigerian Exchange Limited (NGX) by way of listing by introduction (LBI) of its 2.5 billion ordinary shares of 50 kobo each at N100 per share.

Geregu Power, a leading power generation company (GenCo) in Nigeria, is the first in the industry to be listed on the NGX main board, a listing segment for well-established companies with demonstrable records of accomplishments.

Amid high investors’ demand, the stock gained 10 per cent (N10) on its first trading day to close at N110 per share.

The stock led the gainers’ chart, pushing its market capitalisation to N275 billion from the N250 billion it was listed.

The leading power generation company traded 8.5 million volumes of shares at N935 million in one day as its listing further boosted liquidity in the Nigerian capital.

The company had appointed the accounting firm, PwC, in June 2022 as auditors of the firm and also brought on board Paul Miyonde Gbededo, former Group Managing Director/CE of Flour Mills Nigeria Plc.

The listing under the utility sector with the trading symbol has added N275 billion to the market capitalisation, further boosting liquidity in the Nigerian capital market and providing opportunities for wealth creation.

Recall 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 which commenced on July 1, 2022, following relevant approval of the Securities and Exchange Commission (SEC) closed on July 14, 2022, with a bond yield of 14.50 per cent.

Reacting to the listing, the Executive Chairman, Board of Directors, GPP, Femi Otedola, said: “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.”

The 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 to remain an attractive destination for issuers, meet the needs of our valued stakeholders and achieve the highest level of competitiveness,” he said.

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.

Main Board listing is a sign of commitment to strong corporate governance, excellence, professionalism, efficiency in service delivery, and providing increased returns to shareholders.

“We expect 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.”

Chief Executive Officer, NGX, Temi Popoola, said, “Today’s 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.

He said the listing will enhance liquidity for Geregu, increase its visibility among global investors, elevate its value and boost transparency in the market as a 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.”

Former Publicity Secretary of the Independent Shareholders Association and the President of Issuers and Investors Alternative Dispute Resolution Initiative (IIDRI), Moses Igbrude described the listing as a welcome development, urging other companies in the sector to leverage the stock market and boost their operations.

“This is a welcome development that will enhance and deepen the capital market. This will encourage other power sector operators to list on the bourse to access cheaper funds.

President of New Dimension Shareholders of Nigeria, Patrick Ajudua said: “We are happy because today’s listing will pave way for other power companies to list on the exchange. It has allowed shareholders to invest in the company and earn good returns.

“Of more importance to shareholders is the pedigree and integrity of the chairman who has successfully managed many companies and is well known for his ability to reward shareholders with robust dividend payout.”

According to the company, besides Otedola, the board of Geregu Power is made up of eminent Nigerians that are committed to corporate governance.

Recall that Otedola joined the board of GPP as Chairman of the Board of Directors in November 2013. Before this, he was the Chairman of the Board of Directors of Forte Oil Plc (now Ardova Plc) from May 2007 to June 2019. His vision transformed Forte Oil Plc into one of the highest performing companies on NGX.

The company grew in leaps and bounds to become a model of the possibilities inherent in Nigeria, winning numerous accolades in recognition of the successful business turnaround, prompt financial reporting, strong corporate governance and investment of choice within the Oil and Gas Industry and NGX.

In 2019, with a firm belief in the power reforms of the federal government and overall vision of becoming the leading provider of integrated power in the region, he made a strategic decision to sell his majority stake in Forte Oil Plc and invest in developing the power industry in Nigeria through the acquisition of a majority stake in GPP, via an investment vehicle called Amperion Power Distribution Company Limited.

Meanwhile, at the close of trading yesterday, overall market capitalisation rose by N227 billion or 0.9 per cent to close at N26, 600 trillion from N26, 373 trillion recorded on Tuesday. However, the all-share index (ASI) which measures the performance of quoted companies slid by 43.04 points or 0.08 per cent to 48,836.7 points from 48,879.74.

On the price movement chart, 13 stocks appreciated while 21 constituted the losers’ chart. GEREGU led the gainers chart, adding 10 per cent to close at N110 while Multiverse followed with 9.88 per cent appreciation to close at N4.45 kobo.

However, Cadbury emerged as the day’s highest price loser, shedding 9.93 per cent to close at N12.25 kobo while Northern Nigeria Flourmills trailed with a loss of 9.33 per cent to close at N6.80 kobo. PZ Cussons depreciated by 9.19 per cent to close at N8.40 kobo.