Geregu Power Plc, an electricity power plant owned by Nigerian billionaire, Femi Otedola, has gone public on the Nigerian stock exchange on Wednesday.
Otedola listed Geregu Power Plant by way of introduction on the Nigerian equity market’s Main Board to access capital from a deep pool of local and international investors.
Geregu Power listed 2.5 billion shares on the Nigerian stock market at a price of N100 per share. This values the electricity power plant at N250 billion market capitalisation.
The billionaire will part with some of his shares, which he owns in Geregu Power through his investment vehicle, Calvados Holding, that holds 95% controlling stake in Amperion Power.
Amperion Power owns 99.9% of Geregu Power, which invested in the electricity privatisation in 2013 during the Goodluck Jonathan administration. The remaining 5% in Calvados Holding is held by Shangai Power.
Why is Otedola selling Geregu Power shares?
The listing comes at a period Otedola’s Amperion Power was selected by the Federal Government to bid for the acquisition of another power plant.
Ripples Nigeria had reported in July 2022 that the government plans to sell five power plants among them; Geregu Generation Company Limited, Benin Generation Company Limited.
Others are Omotosho Generation Company Limited, Calabar Generation Company Limited, and Olorunsogo Generation Company Limited.
Otedola has been linked to the Geregu Generation. The Geregu 2 has a capacity of 434 MW. It will increase Otedola’s power plant capacity to 735 MW.
The fund-raising followed Otedola’s sale of N7.96 billion worth of shares that he owns in First Bank of Nigeria (FBN) in preparation for the power plant’s bid. It also complement’s the firm’s liquidity, having reported 45.2% growth in 2021 full year net profit.
Its profit after tax rose to N20.5 billion at the end of last year, surpassing the N14.1 billion reported during the corresponding period. Also, revenue grew 32.3% year-on-year to N70.9 billion in 2021.
Join the conversation
Support Ripples Nigeria, hold up solutions journalism
Balanced, fearless journalism driven by data comes at huge financial costs.
As a media platform, we hold leadership accountable and will not trade the right to press freedom and free speech for a piece of cake.
If you like what we do, and are ready to uphold solutions journalism, kindly donate to the Ripples Nigeria cause.
Your support would help to ensure that citizens and institutions continue to have free access to credible and reliable information for societal development.
Students suffer as contractors abandon Kano school projects after receiving over N70m
In 2019, to improve the condition of public schools in Kano State, the Federal Government disbursed millions of naira to...
SPECIAL REPORT: World Bank road projects go bad in Enugu, as state govt fails to fulfill promise
Counterpart funded road projects between the world Bank and Enugu State government have started to fail, as the state government...
INVESTIGATION: How N70m road construction created more hardship for Sokoto residents
“To address recurrent accidents on Gagi to Gidan Dilo road and Fakon Idi roads, in Sokoto State, the Federal Government,...
INVESTIGATION: Inside Kwara school where students are used as labour on teachers’ private farms
In this report, SHEREEFDEEN AHMAD uncovered how young students in Kwara State, Nigeria, are being used for labour work on...
INVESTIGATION: How Kano SUBEB awarded contracts to inactive contractors, non-existent schools
In an effort to address issues hindering quality education, the Kano State Government in 2020 awarded N88,406,667.10 for the construction...