Otedola Creates History
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Femi Otedola, a billionaire, formally listed Geregu Power Plc on the Nigerian exchange.
The new initiative enables the general public to participate in ownership by purchasing shares of the company for N100 each.
One of Nigeria's largest Gencos is Geregu Power plc, and Otedola has said that it will be his main area of commercial concentration, according to BusinessDay.
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| Femi Otedola is a serial investor in Nigeria.Credit: forte Image Credits: Pinterest |
According to Premium Times, 2.5 billion ordinary shares of 50 kobo would be sold by Geregu Power Plant, with an opening selling price of N100 per share.
Geregu Power has become the first electricity company in Nigerian history to successfully list on the Exchange as a generation, transmission, or distribution company.
Where can I buy Geregu Power stock?
Stockbrokers lined up for the share sale include Vetiva Securities, Limited, Apel Asset and Trust Limited, APT Securities and Funds Limited, and Cordros Securities Limited.
Crossworld Securities Limited, Dynamic Portfolios Limited, Signet Investment and Securities Limited, and TRW Stockbrokers Limited are among the others.
The Issuing House(s)/Financial Adviser(s) are Vetiva Capital Management Limited and Kairos Capital Limited (s).
Expert opinion
Victoria Ejugwu, an economist at Vetiva Research, expressed confidence in the company's shares performing well on the Nigerian exchange in a note in response to the listing.
The following is taken from a portion of the note:
Looking forward, given that demand for power has historically never been met and with current generation data suggesting that supply remains far less than demand, we see the company's turnover maintaining a positive growth trajectory in the medium term.
"We also think the company will benefit from the continuing infrastructure improvement, which includes strengthening the transmission line, because there is a great chance that supply will rise dramatically.
As evidenced by the July purchase of 10 mobile transformers and sub-stations, the Federal government also reached an agreement with SIEMENS to increase the transmission capacity to 7000MW. Implementation of this agreement is already underway.
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This suggests that increasing generation capacity in the mid-long term is extremely doable for Geregu.
In conclusion, we believe the company's prospects of delivering strong growth in the mid-long term are solid given the expected uptick in demand given the rising urbanization rate (world-bank projects 4.23% annually), an expanding population (World-bank projection of 2.7%), and the prospects of an improved grid.
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