Key Highlights
- Otedola believes that to sustain wealth companies need to list on the stock the Exchange
- Since its listing on NGX, Geregu has added more than N800 billion in market capitalization to NGX
- The NGX commended Otedola and the firm’s Board for instituting best practices in corporate governance and playing a leading role in the country’s power sector
The Chairman of Geregu Power Plc, Mr. Femi Otedola has said that for companies to sustain wealth they need to quote on the Nigerian Exchange.
Otedola stated this at the Closing Gong Ceremony commemorating the first Annual General Meeting of Geregu Power Plc as a listed company on the NGX.
The platform for capital raising
He appreciated NGX for the platform provided to listed companies for their capital raising activities, and also the transformation of the Exchange through its demutualization period. He said:
- “We promise to sustain our partnership for many years to come and reiterate our commitment to best practices of corporate governance.
- “This is my second coming to the Exchange and I always believe that to sustain wealth you need to list your company on the stock Exchange, I made reference to the encounter I had with Chief Adedoyin, I understand that the problems the last generation encountered in businesses were that they refused to list their businesses.
- “So I as an individual have learned from that lesson, that’s why I decided that we must list this company.”
He further noted that the power sector has a lot of problems but they are surmountable problems adding that is a matter of leadership in the country.
- “Today am lamenting about the cost of diesel, I have asked my team to go and start installing solar panels to save the cost of diesel If the power is well organized, it is even cheaper, you won’t need diesel, and you don’t have to maintain a generator. I believe we can get there, is a matter of time.
- Like I said earlier, Aliko Dangote as an individual has built 2000 megawatts of power for his cement plants, fertilizer plant, and refinery, and the country since I was born only have 5000 megawatts, so it is disheartening, I think the successive government has failed in this regard but I believe we are now in a stage that the power sector will get a lot of attention,” he said.
The CEO, Geregu, Mr. Akin Akinfemiwa also restated the company’s dedication to positioning itself to be more valuable to shareholders and the business community at large.
The NGX commended Otedola and the firm’s Board for instituting best practices in corporate governance and playing a leading role in the country’s power sector.
The Chief Executive Officer, of NGX, Mr. Temi Popoola highlighted the contributions and value that Geregu had brought to the capital market since its listing and also noted the quality of corporate governance exhibited by the firm.
N800 billion in market capitalization
Popoola noted that since its listing on NGX, Geregu has added more than N800 billion in market capitalization to NGX as the market continues to price up its shares amid strong revenue generation and dividend yields.
- “Geregu was one of the first set of listed companies to file their annual reports on the Exchange. It has also contributed significantly to the volume of trades done on the market since its listing,” he said.
The Group Chairman, Nigerian Exchange Group (NGX Group) Plc, Alhaji Dr. Umar Kwairanga commended Mr. Otedola for his longstanding contributions to the capital market.
He also expressed optimism that the listing of Geregu as the first power-generating firm and its experience in the capital market would encourage other players in the sector to come and list on NGX.
Mr. Abubakar Mahmoud, Chairman, NGX, represented by Erelu Angela Adebayo, Director, NGX, on her part, said, “It is our hope that NGX and Geregu Power would continue to work together, to sustain our partnership, and consolidate our shared values for improved outcomes that will be beneficial to the market and the Nigerian economy.”
What you should know
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 then added N250 billion to the market capitalization of NGX, further boosting liquidity in the Nigerian capital market and providing opportunities for wealth creation.
The success of Geregu Power Plc should not only be credited to being a member of the Nigerian Stock Exchange but most importantly the transparency being exhibited by the board and management . Many companies in Nigeria has been ruined by unbridled corruption practiced by the board and the management . Kudos to Geregu .