The first Nigerian power company to list on the Nigerian Exchange Limited, Geregu Power Plc, traded for the first time on the stock market and gained 10 per cent at the close of trading on Wednesday.
This was despite 0.09 per cent drop in the market capitalisation.
The Nigerian Exchange Limited had earlier announced the listing by introduction of Geregu Power Plc on the main board of the Exchange.
A total of 2.5 billion ordinary shares of Geregu were listed at N100 per share, under the utilities sector and electric power generation sub-sector of NGX, with the trading symbol, GEREGU.
While boosting liquidity in the Nigerian capital market and providing opportunities for wealth creation, the admittance of Geregu’s shares has consequently added N250bn to NGX market capitalisation.
At the close of market Wenesday, Geregu’s stock gained N10 on its first trading day on the NGX to close at N110 per share from N100 per share it was listed by introduction, raising market capitalisation to N275bn from the N250bn it was listed.
The power company traded 8.5 million volumes of shares at N935m in one day as its listing further boosted liquidity in the Nigerian capital.
A closing gong ceremony is planned for the last week of October 2022 to mark the significance of the listing.
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.”
