Why we listed N4.34bn shares on NGX – Aradel Holdings; Listing lifts market capitalisation up by N3.42bn 

Lagos, Oct. 14, 2024

Aradel Holdings Plc, on Monday, said it listed on the Main Board of the Nigerian Exchange Ltd. (NGX) to leverage the capital market for future growth and expand its operations.

Mr. Adegbite Falade, Managing Director of Aradel, said this at the Facts Behind the Listing of the integrated energy company and Closing Gong Ceremony to commemorate its listing at the NGX in Lagos.

The News Agency of Nigeria(NAN) reports that Aradel listed 4.34 billion shares on the NGX Main Board at N702.69 per share with a nominal value of 50k each, through a listing by introduction.

This boosted the market capitalisation of the NGX by N3.05 trillion, marking a significant milestone in the oil and gas sector’s participation in the stock market.

Falade said the listing cemented the role of the firm  as a dominant player in both traditional and renewable energy sectors.

The managing director stated that the listing was also a testament to the company’s resilience, adaptability, and unwavering dedication.

This, he added, was to provide sustainable energy solutions that drive growth across communities and industries.

He said: “This will mark a historic milestone for Aradel, underscoring our commitment to creating long-term value for our shareholders and deepening our contributions to Nigeria’s economic landscape.

“As we embark on this new chapter in Aradel’s transformation journey, we remain focused on operational excellence, strategic expansion, and delivering returns that reflect our track record and vision for an energised future.”

Likewise, Mr. Ladi Jadesimi, the Chairman of Aradel Holdings, said that Aradel aims to expand its footprint in the renewable energy space while maintaining leadership in the oil and gas sector.

“The listing of Aradel Holdings on NGX represents a pivotal moment for us and provides us with the platform to unlock further value for our shareholders.

“We are committed to driving sustainable growth in Nigeria’s energy industry, particularly in the renewables space, while continuing to excel in petroleum product exploration and refining,” he said.

Commenting, Alhaji Umaru Kwairanga, Chairman, Nigerian Exchange Group, said the Exchange was honoured to facilitate capital raising for companies like Aradel that play a critical role in Nigeria’s economic progress.

Kwairanga noted that the achievement of the listing was not just a win for Aradel, but a clear indication to both local and global investors that Nigeria’s capital market remains vibrant, resilient, and full of opportunities.

Also, Mr. Temi Popoola, Group Managing Director, NGX Group, said that the listing of an equity for the upstream sub-sector of the oil and gas industry is significant and beneficial.

Popoola noted that this was also crucial in the light of its dire capital requirements and chronic underinvestment.

“Aradel has come to the market at a critical time as this and we are confident that our infrastructure here at NGX, both market and technology, can unlock the capital flows needed to ensure the sector thrives,” he said.

Mr. Jude Chiemeka, Chief Executive Officer (CEO) of NGX, also said Aradel’s listing highlighted NGX’s ability to support leading companies in their growth journey.

Chiemeka said, “This is not just a milestone for Aradel, but a key moment for the energy sector, demonstrating how the capital market could  fuel efficiency and development in critical industries.

Aradel Holdings is one of the major players in Nigeria’s oil and gas industry, and operates across the entire oil and gas value chain, with business interests in the exploration, production and refining of petroleum products.

Meanwhile, the stock market started the week on a bullish note, with the listing of Aradel Holdings stocks contributing N3.42 trillion to the Nigerian Exchange Ltd. (NGX) market capitalisation.

NAN reports that Aradel Holdings officially offered 4.34 billion ordinary shares, each with a nominal value of 50k, at N702.69 per share, resulting in a market capitalisation of N3.06 trillion.

The listing details were released by Chapel Hill Denham, the advisory firm managing Aradel’s listing on the NGX.

The listing followed the company’s recent announcement that it had signed a Sale and Purchase Agreement with global energy giant TotalEnergies and the Nigerian National Petroleum Company (NNPC) to acquire a 100 per cent interest in the Olo and Olo West marginal fields, located onshore in Nigeria.

Accordingly, the NGX market capitalisation which opened at N56.088 trillion, gained N3.422 trillion to close at N59.510 trillion.

The All-Share Index also rose by 0.62 per cent or  609 points  to close at 98,215.13, against 97,606.63 recorded on Friday.

As a result,  the Year-To-Date (YTD) return increased by 31.35 per cent.

Gains in Guaranty Trust Holding Company (GTCO), Zenith Bank, FBN Holdings, as well as Dangote Sugar, Oando, among other advanced equities also pulled the market performance up.

However, market breadth closed negative with 31 losers and 22 gainers on the floor of the Exchange.

Vitafoam led the losers’ chart by 9.09 per cent to close at N20, Tantalizers trailed by 8.33 per cent to close at 55k per share.

International Energy Insurance lost 6.37 per cent to close at N1.47, Secure Electronic Technology Plc dropped 6.15 per cent to close at 61k, while Guinea Insurance shed 6.12 per cent to close at 46k per share.

On the other side, Wapic led the gainers chart by 10 per cent to close at 88k, Aradel followed by 9.99 per cent to close at N772.90 per share.

The Initiate Plc added 9.74 per cent to close at N2.14, Consolidated Hallmark Plc advanced by 9.35 per cent to close at N1.52, Mecure went up by 8.91 per cent to close at N11 per share.

Analysis of the market activities showed trade turnover settled higher relative to the previous session, with the value of transactions up by 251.96 per cent.

Investors traded 304.97 million shares valued at N19.71 billion were exchanged in 8,083 deals, compared with 304.43 million shares valued at N5.60 billion exchanged in 6,950 deals posted in the previous session.

Cutix led the activity chart in volume with 37.93 million shares valued at N95.20 million, followed by Zenith Bank with N34.09 million shares worth N1.28 billion to lead the chart in value.

United Bank For Africa (UBA) sold 33.94 million shares valued at N897.81 million, Chams transacted 18.82 million shares worth N38.22 million.

Aradel traded 18.71 million shares worth N14.46 trillion.