After weeks of bear-run, the value of equities traded on the Nigerian Exchange Limited (NGX) soared by N250bn, following the listing by introduction of Geregu Power Plc, located at Itobe–Ajaokuta, Kogi State, North Central Nigeria, on its Main Board Wednesday, 5 October 2022.
Specifically, a total of 2.5bn ordinary shares of Geregu, a leading power generating company (GenCo), generating 434 megawatts of electricity, were listed at N100 each, under the Utilities Sector and Electric Power Generation sub-sector of NGX, with the trading symbol, GEREGU.
Geregu Power, therefore becomes the first of the nation’s power assets unbundled from the Power Holding Company of Nigeria (PHCN), formerly known as the National Electric Power Authority, to be listed on the NGX Main Board, thereby boosting further boosting liquidity in the Nigerian capital market and providing opportunities for wealth creation.
It is 80% owned and operated by Amperion Power Distribution Company Limited with the Federal Government retaining 20% (jointly held by the Bureau of Public Enterprise and the Ministry of Finance Incorporated),
Commenting on the development, Chairman, NGX, Abubakar Mahmood, expressed pleasure “that Geregu Power has joined the prestigious group of companies listed on our Main Board, which will differentiate it as a professionally run power company with high standards, having met NGX’s listing criteria.”
A Main Board listing, he explained, “is a sign of commitment to strong corporate governance, excellence, professionalism, efficiency in service delivery, and providing increased returns to shareholders.
“It is our expectation that the Geregu Power listing will encourage other power generation and distribution companies to list their shares on the Exchange, thereby opening the sector up to cheaper, long-term capital that will boost infrastructural development and value creation.”
Also commenting on the listing, the Chief Executive Officer, NGX, Temi Popoola, described it as “a promising development in the country’s power sector and we are delighted to welcome Geregu Power Plc to the Exchange. Having Geregu listed in our market is proof of NGX’s commitment to building a robust and inclusive market and creating avenues for sustainable investment.
“This listing will enhance liquidity for Geregu, increase its visibility among global investors, elevate its value and boost transparency, as our marketplace is a sterling platform for raising capital and enabling sustainable growth for national development. As a listing platform of choice, we are committed to working with companies at various stages of growth to explore the different opportunities in the capital market to meet their business objectives,” he stressed.
Speaking on the listing, the Chairman, Board of Geregu Plc, Femi Otedola, described it as “the actualization of a vision to bring world-class standards in governance, sustainability, and business processes to the Company and the Nigerian electricity sector.” He added that “listing on the Main Board of the Exchange will ensure that the long-term growth of the company is assured and its benefits will be passed on to our esteemed shareholders”.
On its part, a statement by the Nigerian Exchange Limited said it continues to evolve in order to remain an attractive destination for issuers, meet the needs of our valued stakeholders and achieve the highest level of competitiveness.
Geregu Power, was incorporated in November 2006 and began operations in February 2007, to generate electric power supply to the national grid. It was acquired from the Federal Government by Amperion Power, then part of Forte Oil Plc, now Ardova Plc, which invested $94 million to enhance its capacity. The Plant is today owned by Mr. Femi Otedola.
On July 1, 2022, the company announced the opening of its ₦40bn Fixed Rate Senior Unsecured Bonds, under its ₦100 billion Multi-Instrument Debt Programme, the net proceed of the series 1 bond issuance, is to part-finance the expansion of its current power generation capacity.
Coupon payment on the Naira-denominated issue with a seven-year tenor due 2029, with pricing ranging from 12.75% to 13.25%; a 24-month moratorium on the principal repayment, will be semi-annual.