Aradel Holdings PLC saw its share price jump by 10% on the Nigerian Exchange (NGX) last week, driven by a surge in employee share acquisitions. The development halted the oil company’s recent price depreciation, boosting its market valuation and rekindling investor interest.
The upward movement followed a decision by one of Aradel’s major shareholders to reduce their stake in the company. This strategic move was aimed at improving liquidity and fostering demand for the stock, a key step towards meeting NGX’s free float requirements.
Market Performance
Trading under the ticker ARADEL, the company’s share price rose from N485.30 at the beginning of the week to N533.80 by Friday, recording a 10% increase in a single trading session. Despite this, Aradel’s high share price has limited its appeal to retail investors, although recent filings reveal a growing trend of insider acquisitions by employees and their relatives.
Historical Context and Valuation
Aradel Holdings debuted on the NGX at N702.69 per share but has struggled to maintain its initial valuation. The company’s stock once peaked at N850.10, but it closed last week with a market capitalisation of N2.32 trillion, reflecting a 24% loss from its initial listing value of 4.344 billion shares.
Financial Highlights
According to the company’s unaudited financial report for the first nine months of 2024, Aradel recorded an earnings per share (EPS) of N25.45. The board has also declared an interim dividend of N8 per share, underscoring its commitment to delivering value to shareholders despite market challenges.
Future Outlook
As insider acquisitions gain momentum, analysts are optimistic about the stock’s potential for recovery. Aradel’s efforts to stabilise its valuation and improve liquidity could attract more investors, paving the way for sustained growth in the equities market.
 last week, driven by a surge in employee share...){kind=link}