Business - Energy - News - October 3, 2022

Otedola’s Geregu Power to list 2.5billion ordinary shares on the Nigerian Stock Exchange

MEDIATRACNET

The management of Geregu Power Plc says the power generation company is set to list part of its shares on the Main Board of the Nigerian Exchange (NGX) this week.

The listing by introduction is expected to become official on Wednesday, October 5, 2022, to make it possible for members of the investing public to buy the shares of the company, to become its part owners with billionaire businessman, Femi Otedola.

Details of the planned listing contained in the regulatory filing at the Nigerian Stock Exchange (NSE) revealed the company plans to put about 2.5 billion of its ordinary shares of 50 kobo each at the disposal of the public at a share price of N100 per share valued at about N250 billion on the first day.

The plan by the power company, which will make it the first power generation firm in the Nigerian capital market, will be the second time it will be raising funds through the Nigerian Exchange this year

Also, Geregu Power will be the first Power Holding Company of Nigeria (PHCN0 successor company to be listed on the NSE after the privatization programme in the Nigerian Electricity Supply Industry (NESI) since 2013.

Last July, Geregu Power announced the successful raising of about N40 billion in unsecured corporate bonds from the market at an interest rate of 14.5 percent.

The bond issue was part of the company’s N100 billion multi-instrument issuance programme meant to finance capital expansion and working capital requirements.

The bond, which was described as the largest corporate bond raising by a Power generation company in Nigeria, opened on July 1, 2022 and closed on the July 14, and was oversubscribed.

Geregu Power PLC was incorporated in November 2006 as one of the unbundled companies from the now-defunct PHCN.

The Company has been operating since February 2007, to generate electricity supplied to the Transmission Company of Nigeria (TCN) through the National Grid for distribution to consumers nationwide.

Partners in the Geregu power include Amperion Power, which owns 99.9 percent of the company. Calvados holding (owned by Femi Otedola) controls 95 percent of Amperion Power, while Shangai Power controls 5 percent minority shares of the company.

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