Geregu Power Plc, a renowned electricity generation enterprise helmed by Nigerian tycoon Femi Otedola, has attained a momentous accomplishment on the Nigerian Exchange. The company’s market capitalization has exceeded the $1-billion milestone, soaring to an unprecedented peak of $1.12 billion following several weeks of stagnant trading.
At the time of composing this report, Geregu Power’s stocks were being traded at N350 ($0.45) per share on the local exchange. This reflects a 6.06-percent rise from their initial price of N330 ($0.425) earlier in the day. The upturn can be attributed to a revitalized investor enthusiasm in the esteemed firm.
The surge in the company’s shares and market capitalization is a direct result of the news regarding Otedola, the chairman of Geregu Power, joining forces with the Lagos State government and the African Development Bank Group (AFDB) to embark on a power transmission project. This collaborative endeavor will operate under a Public-Private Partnership (PPP) framework, marking a significant step towards establishing Nigeria’s inaugural PPP power transmission initiative.
This progress is in line with the Nigeria Electricity Act of 2023, which was recently enacted into law by Nigerian President Bola Tinubu. The legislation empowers state governments and private individuals to undertake electricity transmission within regions covered by the national grid, leading to a decentralized approach to electricity regulation.
Geregu’s net worth surge
Geregu Power has attained a remarkable milestone by elevating its market capitalization to an impressive N875 billion ($1.12 billion), solidifying its position as one of the top ten most valuable companies on the Nigerian Exchange. This notable achievement has been accomplished in less than ten months since the company’s shares were listed on the local exchange, positioning Geregu Power as the pioneering electricity-generating company to be listed on the Nigerian Exchange.
Geregu listed on the NSE
This noteworthy accomplishment is accomplished in under ten months since Geregu Power’s shares were initially listed on the local exchange, marking it as the first electricity-generating company to be listed on the Nigerian Exchange.
In the second quarter of its ongoing fiscal year, Geregu Power, led by Otedola, achieved a pre-tax profit of N6.9 billion ($8.9 million), demonstrating a positive growth compared to the N5.3 billion ($6.8 million) pre-tax profit reported in the corresponding period of 2022.
The upsurge in pretax profit can be attributed to the substantial increase in revenue experienced by the company in the second quarter of 2023. Revenue soared from N15.2 billion ($19.6 million) in the corresponding quarter of 2022 to N20.4 billion ($26.4 million).
Otedola’s influence in the company
The notable accomplishment of Geregu Power underscores its consistent success and promising growth trajectory in the Nigerian power sector. With Otedola leading the way, the company is well-positioned to make further advancements in power generation and transmission, contributing to the sustainable development of energy for Nigeria’s future.
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