One of the Nigeria leading electricity power plant, Geregu power plant has officially been listed on the main Board of the Nigerian Exchange (NGX). This happened on Wednesday, October 5, 2022.
The details of the official listing include the listing price of N100 and a market cap of N250 billion with international securities indentification number (ISIN) – NGGEREGU0000.
This listing is the second listing on the Nigerian Exchange in this calendar year and will be documented as a major achievement for the exchange under the directorship of it’s CEO, Temi popoola.
Since this listing went public on Tuesday this week, stakeholders in the power industry have expressed confidence in the country power generation ecosystem.
It is believed that Geregu power already has a reputation of good service. That is why the company stakeholders veiw the company’s listing on NGX as an added advantage.
For the first time in history, Nigeria will be able to invest in power generation industry through privately owned company , Geregu power.
What This Listing Means
Kayode oluwadare who is the Energy industry told news men that this listing means two things:
1. Proof of Concept
This listing will be evidence to future or potential investors including stakeholders that this company, Geregu power is also creating some value in the power sector.
Mr. Oluwadare , also stated that before this time, investors looking to invest in power generation company might be reluctant to do so, this is because of the idea that power generation is not a profitable venture as a result of debts being owned by power generation company to those supplying them with natural gas.
He continued that this listing of Geregu power was able to install some level of confidence in those who may want to invest in power generation.
2. Market Presence
The listing of Geregu power also shows that there is a marketing for power generation in Nigeria, which is good news for stakeholders and potential investors.
This shows that the company is doing something right and that there is profit in this business.
Oluwadare pinpointed that if Geregu power is able to increase it’s capacity, the Transmission Company of Nigeria (TCN), will be capable of wheeling all the power the company generates.
We understand that TCN struggles with Wheeling capacity which is caused by their aging infrastructure. Nevertheless due to the ongoing power deal Nigeria has with Siemen energy, TCN will increase capacity in the future.
- RELATED: See How To Trade Geregu Power Plant Shares On NGX Right Now!
- Fidelity Bank Secures Approval For Private Placement Of N3.08 Billion Unissued Shares.
- Experts Discuss Policy Reform In Nigeria In Order To Attract Foreign Investors.