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Geregu Power to list on NGX, targets N25bn

Geregu Power Plant

Geregu Power Plc is set to list tomorrow on the Main Board of the Nigerian Exchange (NGX) by way of introduction, making it the first electricity company to list on the Exchange.

The power generating company will be listing 2.5 billion ordinary shares of 50 kobo each at a share price of N100 per share, thereby valuing the company at about N250 billion on the first day.

To commemorate the listing, the Exchange will also host executives of the company at a Closing Gong ceremony, “We look forward to hosting you at the Exchange on October 25th or 26th 20222 for a closing gong ceremony to commemorate the listing,” NGX Chief Executive Officer CEO, Temi Popoola, said in a letter to the company.

The listing of Geregu Power, will pave the way for the creation of an electricity sub-sector for the NGX, and hopefully attract more electricity companies to list.

Geregu Power Plc is also bidding for the 434MW power plant, Geregu 2, which will make it its second power plant.

The existing power plant has a capacity of 435MW which the company plans to increase to 735MW in the medium term.

The power generating company will be listing 2.5 billion ordinary shares of 50 kobo each at a share price of N100 per share, thereby valuing the company at about N250 billion on the first day.

Recall that in July, Geregu Power announced it had successfully raised N40 billion in unsecured corporate bonds at an interest rate of 14.5%.

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

The bond opened on July 1, and closed on the 14th and was reportedly oversubscribed, and also the largest corporate bond raised by a power company in Nigeria.

This was also the first electricity company to raise a corporate bond of that magnitude. The capital raise was also the largest in the power sector.

Geregu Power was incorporated in November 2006, as one of the unbundled companies from the now-defunct Power Holding Company of Nigeria (PHCN).

The Company began operations in February 2007, to generate electric power supply to the National Grid managed by the Transmission Company of Nigeria (TCN).

Amperion Power owns 99.9% of the company, with Femi Otedola as the Chairman and Akin Akinfemiwa, the Chief Executive Officer.

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