Investors in Aradel Holdings Plc lost a total of N845 billion four days after the company’s shares were listed on the Nigerian Exchange Limited (NGX). Aradel Holdings, an integrated energy company, listed 4.34 billion shares on the NGX main board on October 14, 2024, through listing by introduction.

The shares were initially priced at N702.69 per share, boosting NGX’s market capitalisation by N3.05 trillion, a major milestone in the oil and gas sector’s participation in Nigeria’s stock market.

However, its market capitalisation, which stood at N3.354 trillion after Monday trading depreciated to N2.717 trillion at the close of transactions on Friday, shedding N845 billion.

Aradel closed Friday’s trading at N625.40 kobo, recording a 10 per cent drop from its previous closing price of N694.8. The stock closed its initial public offer (IPO) with a share price of N772.9 but has lost 19.1 per cent to close at N625.50 kobo.

A breakdown of the company’s transactions from its listing day showed that the stock price appreciated by 6.09 per cent on Tuesday, a day after the listing from N772.90 kobo to N820, just as its volume rose from 18,709,802 to 25,020, 166.

However, the stock dipped by 5.85 per cent at the close of trading on Wednesday, October 16, 2024from N820 to N772 with the volume of shares traded declining from 25,020.166 to 4,252,789.

At the end of transactions on Thursday, October 17, 2024, the stock recorded another price depreciation of 10 per cent from N772 to N694.80 kobo. The company stock price slumped further by 9.99 per cent from N694.80 kobo to N625.40 kobo as of Friday, October 18, 2024.

Aradel Holdings is currently the eighth most valuable stock on the NGX with a market capitalisation of NGN 2.72 trillion, which is about 4.57 per cent of the Nigerian Stock Exchange equity market.

Reacting on the stock performance, a source close to The Guardian, said the NGX operates in a transparent market with a fair pricing methodology that would make it difficult to manipulate prices.

Managing Director/Chief Executive Officer of Aradel, Adegbite Falade, said the listing underscored its commitment to creating long-term value for shareholders and deepening its contributions to Nigeria’s economic landscape. He reiterated its commitment to innovation by expanding its footprint in the renewable space and maintaining its leadership in the oil and gas sector.

“This listing is a testament to our resilience, adaptability and 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 energised future,” he said.