Shares of Geregu Power Plc (NGX:GEREGU) hit an all-time high of N350 per share on Tuesday, July 18th taking its market capitalization rises to N875 billion.
The company reached this milestone amidst renewed buying interest in the stock.
The rise in market capitalization is also boosted by investors’ confidence in reports that the company plans to develop a power transmission project in partnership with the Lagos state government.
Public-Private Partnership
Recall that Nairametrics reported that Geregu Power had disclosed plans to partner with Lagos State Government and AfDB to develop Nigeria’s first PPP power transmission project.
This disclosure was made public by the Chairman, Femi Otedola after he had a meeting with the Lagos state Governor, Mr Babajide Sanwo-Olu, and the President of the African Development Bank Group Dr Akinwunmi Adesina in Lagos state.
It is believed that the project is poised to become the first of its kind in Nigeria as hitherto, private individuals were not allowed to transmit power in the country.
Increased Revenue
The rise in share price is also attributed to improved quarterly financial performance as the company exceeded its targets.
Nairametrics had reported that Geregu Power Plc said it has projected to generate N18.17 billion in revenue for the second quarter ending June 2023.
However, in its unaudited Q2 financial statement, the company exceeded its projections as its revenue for the quarter was N20.4 billion compared to N15.2 billion in the corresponding quarter of 2022.
It also recorded a pre-tax profit of N6.9 billion for the period.
What you should know
Geregu Power Plc went public on the main board of the NGX on 5th October 2022.
The company listed 2.5 billion ordinary shares of 50 kobo each at a share price of N100 per share valuing the company at about N250 billion on the first day.
Share Price of Geregu Power is currently trading at N350 per share bringing its market capitalization to N875 billion. The stock has gained 250% since its IPO.
