The market value of Nigerian billionaire Femi Otedola’s Geregu Power Plc increased by more than $120 million in only 24 hours after it listed on the Nigerian Exchange (NGX), as both retail and institutional investors rushed to buy shares in the top power-generating company.
The share price of the power-generating business surged by 10%, going from N100 ($0.231) at the time of listing to N110 ($0.254) at the conclusion of trading yesterday, in just thirty minutes after its 2.5 billion shares were listed on the Nigerian exchange on Wednesday, Oct. 5.
At the time of this report’s writing on October 6, Geregu shares were trading at N120.9 ($0.279) per share, a 20.9-percent increase over the N100 ($0.231) listing price that they had at the time of their debut.
According to information compiled by Billionaires.Africa, the company’s market capitalization rose by N52.25 billion ($120.85 million) over the course of the previous day, increasing from N250 billion ($578.25 million) to N302.25 billion ($699.1 million) at the time this report was written.
Analysts agree that the recent buying pressures on Geregu Power’s shares can be attributed to the strong valuation of the industry, which has allowed the power company to deliver double-digit growth over the last five years due to robust demand and increased output.
Following the listing, the company’s valuation could skyrocket as investment bankers, hedge funds, and private investors compete for stakes in the power generation firm, which is majority owned by Otedola through one of his companies, Amperion Power Distribution Company.
Vetiva Research, the research arm of Vetiva, a Lagos-based financial services firm, revealed that the company’s shares could reach N131 ($0.303) per share, highlighting its strong performance as it has seen consistent improvement in power output over the five-year period, indicating increased efficiency and improved utilization of its power plant.