Geregu Power Plc, the first Nigerian power firm to list on the Nigerian Exchange Limited, traded on the stock market for the first time on Wednesday and gained 10% at the conclusion of trading. This was despite a 0.9% reduction in market capitalization.
The Nigerian Exchange Limited has previously confirmed the listing of Geregu Power Plc on the Exchange’s main board. A total of 2.5 billion ordinary shares of Geregu were listed on the NGX under the utility sector and electric power generation sub-sector, with the trading symbol GEREGU, at N100 per share.
While increasing liquidity in the Nigerian capital market and creating prospects for wealth creation, the admission of Geregu’s shares has brought N250 billion to the NGX market capitalisation.
Geregu’s stock gained N10 on its first trading day on the NGX, closing at N110 per share, up from N100 per share when it was listed by introduction, lifting market value to N275bn from N250bn.
The power business exchanged 8.5 million shares at N935 million in a single day, boosting liquidity in Nigeria’s capital. To commemorate the significance of the listing, a closing gong ceremony is scheduled for the final week of October 2022.
Commenting on the development, the Chairman, NGX, Mr Abubakar Mahmood, said, “It is our expectation 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.”
The Chief Executive Officer, NGX, Mr 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.”
Speaking on the listing, the Chairman, Board of Directors, Mr 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.”
He added that “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.”
