Geregu Power PLC, a power generation company owned by Nigerian billionaire, Femi Otedola, will on Wednesday, October 5, 2022, make history as the first Nigerian power sector player to be listed on the Main Board of the Nigerian Exchange(NGX) Group looking to raise equity capital to fund its balance sheets.
This was revealed in the excerpts of the approval sent to Geregu, seen by EnergyDay at the weekend.
According to the statement, the Exchange will also host executives of the company at a Closing Gong ceremony to commemorate the listing.
EnergyDay gathered that Geregu Power which presently generates about 10 percent of Nigeria’s power supply, will be listing 2.5 billion ordinary shares of 50 kobos each at a share price of N100 per share valuing the company at about N250 billion on the first day.
The company had earlier in June launched its N40 billion Series I Fixed Rate Senior Unsecured Bond Issue, which was the first tranche under its N100 billion multi-instrument debt programme, with the target of using the net proceeds of the bond to part-finance expansion of its current power generation capacity and also to acquire other strategic new power assets in Nigeria.
A successful listing of a power company on the NGX, according to analysts would pave the way for other players in the Nigerian Electricity Supply Industry(NESI) to source additional capital to finance their operations.
Geregu Power will also be the first electricity successor company emerging from the 2013 electricity market privatisation programme to be listed on the Exchange in Nigeria’s history.
Rated Bbb+ by Agusto & Co and A by Global Credit Rating, the same ratings awarded to the issue by the rating agencies, the Otedola’s owned private power company’s income statement included in its bond prospectus reveal that the firm reported a revenue of N70.9 billion for the period ended December 2021 representing a 32.3% increase year on year.
The company also reported a profit after tax of N20.5 billion in the same period up 45.2% from N14.1 billion a year earlier.
Profits have risen at a compounded annual growth rate of 11% since it reported a profit of N13.4 billion in 2017.
At N20.5 billion last year’s profits are also double the pre-covid year (2019) profits of N10.39 billion.
EnergyDay gathered that the company is also bidding for the 434 MW power plant, Geregu 2, also located in its present site in Itobe, Ajaokuta, Kogi State, with the aim of making it its second power plant.
The existing power plant has a capacity of 435 MW which the company planned to increase to 735 MW in the medium term.
Geregu Power PLC, a power generation company owned by Billionaire Femi Otedola supply electricity to the national grid managed by the Transmission Company of Nigeria (TCN).
Geregu Power is effectively wholly-owned and operated by Amperion Power Distribution Company Limited (APDCL), after APDCL acquired the remaining 20 per cent equity stake held by the government.
The plant is made up of three natural gas-fired SIEMENS V94.2 STG5-2000E gas turbine generator units with a 435MW installed capacity. The turbine units are GT11, GT12, and GT13, and each is designed to produce 145 MW at 15.75KV, stepped up to 330kV via a 173.6MVA power transformer, and generates on average 10 percent of Nigeria’s power.
As part of its operations, natural gas is transported by Nigerian Gas Company (NGC) from SEPLAT through a 135km, 24 inches underground pipeline in the Niger Delta at 35 bar pressure and reduced to 25 bar operating pressure.