Investors purchase Geregu shares for N14bn

Bisola David
Bisola David
Investors purchase Geregu shares for N14bn

40 million shares of Geregu Power Plc, worth at about N14.57 billion, were traded in three trading sessions this December in three cross-deals involving the company’s largest shareholder, Amperion Power Distribution Company Limited.

The PUNCH reported that according to insider trading notices issued by the Nigerian Exchange Limited on Thursday, the transactions occurred in Lagos on December 21, 22, and 27.

Five million shares were traded at N360.30 per unit in one of the transactions. This transaction took place on December 21. The following transaction occurred on December 22 and involves 18.22 million units for N360.20 per unit. The most recent transaction occurred on Wednesday. It entailed exchanging 16.77 million units of Geregu shares at N370 per unit.

A study at the recent seven days of Geregu equities trading on the local market revealed that it was priced at N399, indicating that the 40 million units involved in the cross-deals were swapped at a lower price than the trading price. The share now has a market value of N997.500 billion, indicating that it will likely reach N1 trillion in the following weeks.

Geregu led in terms of traded value at the end of the first post-Christmas trading session, with N6.06 billion.

These recent cross-deals come just a few weeks after Amperion Power Distribution Company Limited sold one million units in a cross-deal stock transaction. The shares were swapped for N399 per unit, putting the total transaction value to almost N399 million.

In a transaction involving the primary shareholder, Amperion Power Distribution firm Limited, 4.8 million units of the power producing firm were traded at N395 per unit on October 31. The other parties involved in these cross-deals have yet to be identified.

Geregu Power Plc said in its estimates for the first quarter of 2024 that it intends to record a profit of N5.56 billion and a cash flow from operations of N590 million. In Q1-2024, the company forecasts operating cash flow before working capital changes to be N9.79 billion.

Geregu was purchased in 2013 by Amperion Power, a subsidiary of Forte Oil owned by billionaire industrialist, Femi Otedola. It became the first power firm to be listed on the NGX in 2022, making history as the first power company to do so.

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