Geregu Power Plc, the 19th most traded stock on the Nigerian Stock Exchange over the past three months (Oct 6, 2022 – Jan 6, 2023), has traded a total volume of 159 million shares—in 3,584 deals—valued at NGN 17.4 billion over the period, with an average of 2.52 million traded shares per session.
A volume high of 25 million was achieved on December 21, and a low of 271 on November 25, for the same period. Share price The current share price of Geregu Power Plc (GEREGU) is N149.00. GEREGU closed its last trading day (Friday, January 6, 2023) at N149.00 per share on the Nigerian Stock Exchange (NGX).
Geregu Power Plc is an electric power generating company incorporated in November 2006 as one of the unbundled companies from the now-dissolved Power Holding Company of Nigeria. The Company currently produces an average of 10% of Nigeria’s electricity. It is the first company in the energy/power sector to be listed on the Nigerian Stock Exchange.
Electricity challenges
The country is struggling with poor power supply for years, often caused by disruptions to existing infrastructure. Despite the best efforts of all stakeholders, the country has continued to experience frequent national grid collapses.
The power supply challenges have crippled the agricultural, industrial, and mining sectors and impede Nigeria’s ongoing economic development that depend largely on electricity to grow. It is no news that the power sector has failed to provide the electricity supply required by both domestic households and industrial producers to sustain a rapidly growing population and economy.
Acquisition Two months after listing, Geregu Power Plc is in discussion with the Fund for Export Development in Africa (FEDA) for the acquisition of a portion of Geregu Power Plc shares. FEDA is the impact development arm of the Africa Export and Import Bank (Afreximbank).
The move, announced on the Nigerian Exchange (NGX), comes nearly two months after the Otedola-led power-generating company successfully listed its shares. “The discussions are currently on going and where these talks progress to a more advanced stage, the Company will notify the Exchange and the investing public in line with the rules of the Exchange,” Geregu Power said.
Financials For the year ended December 2021, Geregu Power’s net income surged by 45.53 per cent to N20.54 billion from N14.12 billion as at December 2020. It earns sizable profit from business function for a given period as operating profit soared by 54.55 percent to N29.52 per cent in December 2021 from N19.10 billion the previous year.
Board meeting
The Board of Directors of Geregu Power Plc will be having its meeting on Friday, January 27, 2023, to consider and approve the Q4’22 Unaudited Financial Statements for the period ended 31 December 31, 2022 (Q4 2022 UFS) and the 2022 Audited Financial Statements respectively.
In accordance with the provisions of 17.18(a) Closed Period Rules, Rule book of the Exchange, 2015 (As amended) Issuers’ Rules), the Closed Period for trading in the shares the Company commenced on January 1, 2023 in respect of the Q4’22 UFS and the 2022 Audited Financial Statements respectively.
In a statement signed by Akin Olagbende, the Company Secretary, no director, persons discharging managerial responsibility, employees with sensitive information, advisers and consultants of the company, other insiders and their connected persons may directly or indirectly deal in the securities of the company until 24 hours after the release of the Q4’22 LFS or the 2022 Audited Financial Statements through the Issuers Portal of Nigerian Exchange Limited and by extension, the general public.
Listing On October 5, 2022, the firm listed 2.5 billion shares. Listed by introduction on the bourse’s main board, the segment comprising companies that are second in listing hierarchy based on how well they meet the exchange’s strictest corporate governance standards and other requirements, the shares were priced at N100 per unit at market open but went on to add 10 per cent. That rate is the upper daily threshold permitted by the bourse.
Geregu Power is controlled by billionaire businessman, Femi Otedola, the former owner of Forte Oil now turned Ardova. Geregu generates electricity as well as distributes it through its subsidiary Amperion. NGX CEO, Temi Popoola, was quoted as saying: “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.
“This listing will enhance liquidity for Geregu, increase its visibility among global investors, elevate its value and boost transparency, as our marketplace is a sterling platform for raising capital and enabling sustainable growth for national development.”
Last line
The exchange has been striving to win back investor confidence at the same soften the ground for corporates to list since the market value of all the companies quoted on it tumbled from a record high of N13.5 trillion early in 2008 to 4.5 trillion the year after.
