Two brothers of billionaire investor and chairman of Geregu Power Plc, Femi Otedola, have purchased 7.700 million units of the company’s shares worth N1.67 billion. This is contained in regulatory filings notifying the Nigerian Exchange (NGX) of insider dealing.
Transaction details: The notice to the NGX showed that on February 2nd, one of Femi Otedola’s brothers purchased 4,000,000 units of Geregu Power Plc shares at N219 per share valued at N876 million.
Also, on February 2nd, the other brother bought 3,600,000 units of Geregu shares at N219/per share. By February 7th, he bought an additional 100,000 units of shares at N207.9 per share. The transactions represent an average price of N213.45 with a cumulative value of N789.765 million.
Geregu Power Plc is a leading power generation company (GenCo) in Nigeria and the first GenCo to be listed on the NGX main board. The listing of Geregu’s shares added N250 billion to the market capitalization of NGX, further boosting liquidity in the Nigerian capital market and providing opportunities for wealth creation.
Gains since listing showed that the company’s stock price stood at N205.00 per share at the close of trading yesterday. This is a 105% increase from the N100 per share it began trading with on October 5, 2022.
Further analysis showed that Geregu Power closed the trading day with N512.500 billion in market capitalization as against N250 billion it was listed on 5th October.
Performance drivers: The announcement that Afreximbank’s subsidiary was set to acquire a minority stake in the company sparked investors ‘optimism about the shares of the company.
The Fund for Export Development in Africa (FEDA), the development impact investment platform of African Export-Import Bank (Afreximbank), had in December announced that it has received internal approvals to acquire a minority stake in Geregu Power Plc, subject to satisfactory diligence and documentation.
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