- A few days after asking Nigerians to buy shares of his company at N100 per share, Femi Otedola’s Geregu Power lost billions
- The company lost about N27.250 billion on Friday, October 14, 2022, representing about 9.02 per cent
- The company was the first power-generating firm to be listed on the Main Board of the Nigerian Exchange Limited, showing its profitability
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Geregu Power, belonging to billionaire businessman Femi Otedola lost about N27.250 billion on the stock market on Friday, 14 October 2022.
The company saw investors expressing negative sentiments the first time it was listed on the floor of the Nigerian exchange. The loss of N27.250 billion represented about 9.02 per cent as investors exercise caution ahead of the 2023 elections and rate hike.
First power company to list on Main Board
According to reports, the Nigerian Exchange Limited (NGX) announced the listing by introducing the power company on the Main Board of the Exchange on Wednesday, October 5, 2022.
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About 2.5 billion ordinary company shares were listed at N100 per share under the utility sector two and the Electric Power Generation sub-sector of the NGX as GEREGU.
The company is one of the leading power-generating companies in Nigeria and the first GenCo to be listed on the Main Board, a listing part made for well-established companies with good records of accomplishment.
Geregu’s share listing added N250 billion to the market cap of the NGX and boosted the liquidity of the Nigerian capital market, providing opportunities for wealth creation.
The company’s share price grew from N100 to N120.90 per share a few days after listing and about N302.250 billion in market cap at the close of trading on Wednesday, October 12, 2022.
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But at the close of business on Friday, October 14, 2022, the company’s share price plummeted by 9.02 per cent or N27.250 billion.
Otedola’s Geregu Power PLC share price jumps to N120, as shareholders make over N25bn in hours
Legit.ng reported that the strong interest shown by Nigerian stock investors in Femi Otedola's Geregu Power has helped lift the company's share price from N100 to N120 on Thursday morning, barely hours after it was listed.
The interest was buoyed by the fact that Geregu is the first power company to list on the Nigerian exchange and positive feelings from analysts.
Legit.ng had earlier reported that a total of 2.5 billion ordinary shares of Geregu were put up for sales at N100 per share