Aradel Holdings Plc, a leading integrated independent energy company, was listed on the main board of Nigeria Exchange (NGX) Limited yesterday, adding N3.05 trillion to the total market capitalisation.
The listing pushed up market capitalisation by 6.1 per cent, from N56.09 trillion to N59.51 trillion at the close of trading yesterday.Its shares, which are now available for trading on the NGX Limited, were listed at N702.69 per unit. The listing has increased the depth of the market while increasing options on the oil and gas index, which has emerged as a top performer this year.
Incorporated in 1992 as Midas Drilling Fund, Aradel has emerged as a trailblazer in the energy industry. Two years after its name change to Niger Delta Exploration and Production Pic, it negotiated the first-ever farm-out agreement with NNPC/Chevron JV for a marginal oil field.
In 2005, it pioneered the modular refinery sub-sector with the commissioning of a 1,000-barrel mini refinery. It has since increased the refining capacity to 11,000 bbl with the introduction of Train two and subsequently Train three.
Its operations spread across energy, gas, refining and investment with oil assets located in Ogbele, Omerelu (Rivers state), Utorogu and Ugheli (Delta) with 500 square kilometres OPL 227 offshore asset it acquired alongside a consortium of firms following the exit of Addax Petroleum.
To ensure stable and predictable pointers to future distributions, Aradel established a dividend policy framework last year, which recommends paying the lower of 20. per cent of cash flow from operations and 50 per cent of profit after tax.
It has ensured a relatively fair liquidity provision for shareholders by maintaining both interim and final dividend payments, a corporate culture that is expected to drive its share price in the coming months.
The company leverages an average crude production of 9,737 barrels per day (bpd) as well as gas production of 26.5 million standard cubic feet per day (mmscf/d). It also recorded an average refinery output of 131.8 million litres as of the first half of this year, a remarkable growth from 85.5 million litres produced in the comparative period of 2023.
According to the company, the listing on NGX expands the investment opportunities for investors looking for quality and dividend-paying companies. It explained that the listing further democratizes investing in the oil and gas sector by broadening the investor base and deepening the Nigerian capital markets in alignment with and benefiting the vision of Aradel’s Founding Fathers so that ordinary Nigerians would have the opportunity to invest in it from Nigeria’s oil and gas sector. Aradel’s listing on the NGX underscores its strategic vision, positioning it as a major listed entity on Nigeria’s foremost stock exchange and expanding opportunities for both the company and its shareholders.
The company’s shares were previously available for trading on NASD OTC Securities Exchange. The transition from NASD, where Aradel established a solid track record of liquidity and transparent price discovery, marked an exciting new chapter in the company’s growth story.
The Managing Director/Chief Executive Officer of Aradel, Adegbite Falade, said: “Monday, October 14, marked a historic milestone for Aradel as we list on the NGX, underscoring our commitment to creating long-term value for our shareholders and deepening our contributions to Nigeria’s economic landscape.”
He said the listing is a testament to our resilience, adaptability, and our unwavering dedication to providing sustainable energy solutions that drive growth across our communities and industries.
“As we embark on this new chapter in Aradel’s transformation journey, we remain focused on operational excellence, strategic expansion, and delivering returns that reflect our track record and vision for an energized future,” he said.
Group Managing Director and CEO of NGX Group, Temi Popoola said: “The benefits of an equity market listing for the upstream sub-sector of the oil and gas industry is especially crucial in light of its dire capital requirements and chronic underinvestment. Aradel has come to the market at a critical time as this and we are confident that our infrastructure here at NGX, both market and technology, can unlock the capital flows needed to ensure the sector thrives.”
CEO of NGX, Jude Chiemeka, echoed similar sentiments, stressing the role of NGX in supporting corporate growth and innovation. “Aradel’s listing highlights NGX’s ability to support leading companies in their growth journey. This is not just a milestone for Aradel, but a key moment for the energy sector, demonstrating how the capital market can fuel efficiency and development in critical industries.”
Chapel Hill Denham and Stanbic IBTC Capital have acted as financial advisers to Aradel. Templars acted as legal adviser while CardinalStone Securities was the stockbroker.
Trading activities on the floor of the Nigerian Exchange closed in an upbeat yesterday as market capitalisation appreciated by N3.42 trillion, amid gains in Aradel Holdings and 21 stocks.
At the close of transactions yesterday, the market capitalisation of listed equities increased by 6.1 per cent to N59.509 trillion from N56.088 trillion it closed on Friday.
Also, the all-share Index appreciated by 608.5 basis points to 98215.13 points from 97606.63 points reported the previous day.
