Institutional Frenzy: Geregu Power Plc Witnesses Soaring Shares with 40 Million Units Snapped Up

In a recent corporate disclosure on insider dealing, Geregu Power Plc, as reported by Infostride News, has experienced a robust trading period marked by significant share sales. The company, demonstrating market confidence, unveiled that a majority shareholder successfully concluded a series of share sales, totaling 40 million units and amounting to a substantial N14.5 billion.

This noteworthy activity transpired between December 21st and 27th, capturing the attention of institutional investors who eagerly participated in acquiring the shares. The insider dealing press release from the company provides detailed information on the transactions, indicating that 5 million units, 18,222,500 units, and 16,777,500 units were sold at N360.3, N360.2, and N370 per share, respectively.

The total value of these shares sold reached an impressive N14.5 billion, with an average share price of N364.32. It is noteworthy that Geregu shares currently trade at N399 per share, bringing the company close to achieving a market capitalization of N1 trillion.

Amperion Power Distribution, identified as a majority shareholder of Geregu Power, executed the share sales in what was described as a “crossed deal” conducted across three trading days. Market sources are speculating that the likely seller of these shares is billionaire Femi Otedola, who is the majority shareholder of Amperion Power. Otedola’s strategic selling of shares to institutional investors is seen as a positive sign, reflecting the continued attractiveness of Geregu Power’s stock.

Infostride News highlights that the enthusiasm witnessed in these transactions serves as a strong indicator of the market’s confidence in Geregu Power. Since its initial listing on the exchange at N100 per share, Geregu Power has experienced exceptional growth in valuation, now trading at approximately N399 per share. The company’s stock performance has been outstanding, boasting a remarkable 167% return and positioning itself as one of the stellar performers on the exchange.

Looking at the fundamentals, Geregu Power’s financial achievements are equally noteworthy. The company has not only exceeded its projected 2022 full-year earnings of N10 billion but has achieved a profit of N12 billion within the first nine months of 2023. With total assets amounting to N157.5 billion, Geregu Power stands out as the first and only power-generating company quoted on the Nigeria Exchange.

In a move that underscores its robust financial position, Geregu Power declared a dividend of N20 billion from its 2022 results, not only rewarding its shareholders but also signaling stability as it approaches a market capitalization close to N1 trillion. The consistent positive performance of Geregu Power, as reported by Infostride News, reinforces its status as a key player in the market, capturing the confidence of investors and contributing to the overall dynamism of the Nigerian stock exchange.