Days after announcing Geregu power shares, Otedola loses billions of Naira

Geregu Power, belonging to billionaire businessman Femi Otedola lost about N27.250 billion on the stock market on Friday, 14 October 2022.

The company saw investors expressing negative sentiments the first time it was listed on the floor of the Nigerian exchange.

The loss of N27.250 billion represented about 9.02 per cent as investors exercise caution ahead of the 2023 elections and rate hike.

According to reports, the Nigerian Exchange Limited (NGX) announced the listing by introducing the power company on the Main Board of the Exchange on Wednesday, October 5, 2022.

About 2.5 billion ordinary company shares were listed at N100 per share under the utility sector two and the Electric Power Generation sub-sector of the NGX as GEREGU.

The company is one of the leading power-generating companies in Nigeria and the first GenCo to be listed on the Main Board, a listing part made for well-established companies with good records of accomplishment.

Geregu’s share listing added N250 billion to the market cap of the NGX and boosted the liquidity of the Nigerian capital market, providing opportunities for wealth creation.

The company’s share price grew from N100 to N120.90 per share a few days after listing and about N302.250 billion in market cap at the close of trading on Wednesday, October 12, 2022.

But at the close of business on Friday, October 14, 2022, the company’s share price plummeted by 9.02 per cent or N27.250 billion.
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