Otedola’s Geregu Power Loses N87.5bn As Shares Drop By 35%

Femi Otedola’s Geregu Power PLC has lost N87.5bn after share price fell 35 per cent on Wednesday.

Geregu shares fell from N350 to N315, thereby cutting the company’s market capitalisation to N787.5bn.

The electricity power generation company recorded a mega market capitalisation of N875bn on Tuesday and Monday.

Geregu Power is the first electricity company to be listed on the Nigerian Exchange Group (NGX).

When Geregu first listed 2.5 billion ordinary shares of 50 kobo each at a share price of N100 per share the market capitalisation was valued at about N250 billion.

The company owned majorly by Otedola announced a partnership with Lagos State Government and AfDB to develop Nigeria’s first PPP power transmission project.

In the first half of 2023, Geregu posted a revenue of N34.69bn generated from the sale of energy and capacity charges.

The company sat on N8bn profit by the end of the first half of 2022.