…Company’s share price surges 223% in 6 months
By Nkiruka Nnorom
The Chairman of Geregu Power Plc, Mr Femi Otedola, has reiterated the company’s commitment to continue to uphold the tenets of good corporate governance, even as its share price surged by 223 per cent since its listing in October at the Nigerian Exchange Limited (NGX).
Otedola, who gave the assurance while speaking at the “Closing Gong ceremony” and commemoration of the company’s first Annual General Meeting (AGM) at NGX in Lagos, also restated the company’s readiness to continue to maximize shareholders’ value.
Geregu Power Plc was one of the first set of listed companies to file its 2022 Annual Report and Accounts, a key part of the post-listing rules requirement of the Exchange. The company has also contributed significantly to the volume of trades done on the market since its listing.
Listed on the NGX in October 2022 at N100 per share, the share price has risen steadily within the six month period to close at N323 per share at the end of transactions on Friday, March 30, 2023.
Speaking at the event, Otedola appreciated NGX for the platform provided to listed companies for their capital raising activities and for transforming the Exchange through its demutualisation exercise.
He said: “We are the first electricity generation company to list our shares on the NGX. We are also the first power company to embark on an aggressive 300 percent expansion drive and the first to release its financial results and so I am happy to be here.
“We will sustain our partnership with NGX for many years to come and we reiterate our commitment to best practices of corporate governance.”
Otedola called on the incoming administration to do all it could to tackle power sector challenges.
He identified transmission as the major problem facing the power sector, saying that if the problem is fixed, the manufacturing sector and the entire economy would be better for it.
“I believe we are now at the stage where the power sector will get a lot of attention. We have new plants; our problem is transmission. There is the need to look in this direction. We are at a stage where the new government can come in and tackle the challenges in the power sector and, hopefully, there will be positive results.
“So, what is needed is to seek investors from the private sector to work on these challenges,” he said.
Whilst expressing delight at the company’s first year anniversary as a listed company, he said that for any company to sustain wealth, there is a need to list on the stock exchange.
The CEO, Geregu Power, Mr Akin Akinfemiwa, speaking, restated the company’s dedication to positioning itself to be more valuable to shareholders and the business community at large.
He acknowledged the NGX and the stockbrokers for their support and trading the company’s stocks on the bourse.
“We have come today to state our unflinching commitment towards upholding the values and ethos of the exchange. We are doing everything within our means to expand our capacity towards maximizing shareholders’ value,”Akinfemiwa said.
The Chief Executive Officer, NGX, Mr Temi Popoola, noted that Geregu has added more than N800 billion in market capitalisation to NGX as the market continues to price up its shares amid strong revenue generation and dividend yields.
He highlighted the contributions and value that Geregu had brought to the capital market since its listing and also noted the quality of corporate governance exhibited by the firm.
The NGX boss described Otedola as a firm believer in the capital market, noting that the exchange was aware of Geregu Power Plc’s strategic ambitions to ensure more value for all stakeholders.
“We are aware of your strategic ambitions and we assure you that the NGX can help you to raise capital. We hope that you will be using the market now and in any other strategic vehicles and companies that you may have,” Popoola added.
The Group Chairman, Nigerian Exchange Group (NGX Group) Plc, Alhaji Dr Umar Kwairanga commended Mr Otedola for his long standing contributions to the capital market.
He also commended Geregu for showing good example in adhering to the post-listing requirements.
He expressed optimism that the listing of Geregu as the first power generating firm and its experience in the capital market would encourage other players in the sector to list on NGX.
Mr Abubakar Mahmoud, Chairman, NGX, represented by Erelu Angela Adebayo, Director, NGX, on his part, said: “It is our hope that the NGX and Geregu Power would continue to work together to sustain our partnership, and consolidate our shared values for improved outcomes that will be beneficial to the market and the Nigerian economy.”
Geregu Power, chaired by Femi Otedola, a billionaire businessman, is the first and the only electricity generation company (GenCo) to be listed on the NGX main board.
The company had listed N2.5 billion ordinary shares on the NGX by introduction.