Femi Otedola is reportedly set to list his electricity generation company, Geregu Power Plc, on the Nigerian Exchange (NGX), to allow the public become part owners by buying the company’s shares.
Otedola had acquired Geregu Power Plant after the Federal Government during Goodluck Jonathan’s administration privatised the power sector, opening the industry up for private investors.
Geregu Power Plant will now be listed on the Nigerian stock exchange. Over 2.5 billion ordinary shares of 50 kobo each will be listed on the equity market, with the opening selling price placed at N100 per share.
In a report by Nairametrics, it was revealed that Geregu Power Plant will have a market capitalisation of N250 billion based when it list on the Nigerian stock exchange on Wednesday, October 5, 2022, through way of introduction.
The public listing comes at a period the Power Plant wants to expand its operation by acquiring another power plant, Geregu 2, which has a capacity of 434 MW.
This will increase Geregu Power Plant’s capacity to 735 MW. It is expected to also positively impact the company’s revenue, which rose to N70.9 billion in 2021, recording a 32.3 per cent year-on-year growth last year.
Geregu Power Plant’s profit after tax also recorded an impressive year-on-year growth of 45.2 percent during the period aforementioned, after grossing N20.5 billion between January to December last year, in contrast to the N14.1 billion the company recorded during the corresponding period in 2020.