Geregu Power Plc is witnessing investors’ positive sentiment following the announcement that Afreximbank is set to acquire a minority stake in the company.
The company’s share price has gained 33% or N86.75 billion in the last three trading sessions on the Nigerian Exchange.
More on the gains: Checks by Nairametrics showed that the company’s stock price rose to N139,70 per share at the close of trading on Thursday, December 29, up from N105 per share on 23rd of December.
Further analysis showed that Geregu Power closed the trading day with N349.25 billion in market capitalization as against N262.5 billion at the beginning of trading on 23rd December.
First GenCo to list on NGX: Geregu Power, a leading power generation company (GenCo) in Nigeria, is the first GenCo to be listed on the NGX main board, a listing segment for well-established companies with demonstrable records of accomplishments. The listing of Geregu’s shares added N250 billion to the market capitalization of NGX, further boosting liquidity in the Nigerian capital market and providing opportunities for wealth creation.
Impending deal with Afreximbank: The Fund for Export Development in Africa (FEDA), the development impact investment platform of African Export-Import Bank (Afreximbank) recently announced that it has received internal approvals to acquire a minority stake in Geregu Power Plc, subject to satisfactory diligence and documentation.
- FEDA has the obligation of providing capital towards advancing intra-African trade, export development and industrialisation in Africa.
- FEDA, in a statement, said it has made a strategic decision to support leading energy platforms across Africa, including the renewables and transition fuels sectors as part of its intervention efforts in Africa’s energy sector.
- FEDA noted that it targets to support the business as a minority investor and work with the current owners and management team to drive the expansion of the business over the next years.
In case you missed it: At the close of trading on Thursday, the benchmark index gained 0.78% to close at 50,300.00 points, marking the highest point since August 8th.
- Positive sentiment in most blue-chip firms resulted in Nestle Foods Plc gaining +10.00%, Geregu Power growing by +10%, MTNN, +0.47%, Seplat,+4.76%, Nigerian Breweries, +9.04% among others.
- Consequently, the year-to-date (YTD) return rose to 17.75%, while market capitalization gained N212.32 billion to close at N27.40 trillion.
- Further analysis of the day’s trading showed turnover finished higher relative to the previous session, with the value of transactions up by 102.36%. A total of 490.48 million shares valued at N7.75 billion were exchanged in 4,480 deals.
