Oil and Gas company, Aradel Holdings list on the NGX Main Board with a N3 trillion market cap
Aradel Holdings is set to officially list its shares on the Main Board of the Nigerian Exchange (NGX) at N702.69 per share on Monday, October 14, 2024.
This follows the company’s recent announcement that it has signed a Sale and Purchase Agreement with global energy giant TotalEnergies and the Nigerian National Petroleum Company (NNPC) to acquire a 100% interest in the Olo and Olo West marginal fields, located onshore in Nigeria.
According to information obtained by Nairametrics, the acquisition was finalized with a purchase consideration of $16 million, alongside an additional $3.5 million in deferred and conditional payments.
This marks a significant step in Aradel’s expansion in Nigeria’s energy sector, adding to its asset portfolio.
The listing details were released by Chapel Hill Denham, the advisory firm managing Aradel’s listing by introduction on the NGX.
The company will offer 4.34 billion ordinary shares with a nominal value of N0.50 each, priced at N702.69 per share. This will result in a market capitalization of approximately N3.06 trillion.
Share Re-denomination and Growth
Aradel Holdings began trading on the NASD OTC market in early 2024, initially priced at N1,089 per share. By September 4, 2024, the share price had soared to N9,867.38, reflecting significant investor interest.
In a strategic move on September 30, 2024, the company implemented a share re-denomination, adjusting the nominal value to N0.50 and splitting each share into 20.
Post-split, the stock price was recalibrated to N469.95 per share.
Despite the re-denomination, Aradel’s stock continued to surge, closing at N641.06 by October 9, 2024—a 36% increase within just a few days.
This performance highlights the company’s strong showing on the NASD OTC platform, which has served as a launchpad for its transition to the NGX.
The move to the NGX Main Board marks a crucial milestone for Aradel Holdings, providing broader market access and positioning the company for continued growth in the Nigerian energy landscape.
A long-term strategy
Aradel’s NGX listing is part of the company’s broader strategic plan outlined in its 2023 annual report, published in May 2024. Chairman Ladi Jadesimi emphasized the company’s commitment to sustaining its growth momentum while achieving a successful listing on the Nigerian Exchange before the close of the year.
“In 2024, our strategic priorities remain clear: to maintain our growth momentum, secure a smooth listing on the Nigerian Exchange, and optimize our asset base, while ensuring effective succession planning for our leadership,” Jadesimi said.
This vision was echoed by Managing Director and CEO, Gbite Falade, who, in August, confirmed that Aradel was on track to meet its listing goals by the end of the third quarter.
Strong financial performance
- Aradel’s impressive financial results have further bolstered its market positioning ahead of the NGX listing.
- In August 2024, the company released its audited financials on the NASD OTC platform, reporting a pre-tax profit of N122.78 billion for Q2 2024 an astounding 535.16% increase compared to N19.33 billion in the same period of 2023.
- Revenue also surged 199% year-on-year, reaching N167.14 billion, up from N55.83 billion in 2023.
- With the acquisition of the Olo and Olo West fields and its upcoming listing, Aradel Holdings is positioning to strengthen its presence in the Nigerian energy sector.
(Nairametrics)
