Geregu Power Plc, Nigeria’s only publicly traded electricity company, saw its shares jump to N216.5 in early trading on Thursday as investors rushed to buy the stock.
After opening at N134 per share on Thursday, January 26th, 2023, the company’s shares have now gained 61% in one week.
On Tuesday, the company released its 2022 audited accounts as an early flier, recommending a N20 billion dividend. The company only went public in October of last year.
This week’s share price has skyrocketed as investors digested the company’s recently released earnings.
A quick check by Naijaonpoint reveals that as of 12 noon, approximately 598,400 shares were on offer while approximately 38,400 were on bid, indicating that the stock is in a net offering position.
The highest bid price for the stock, on the other hand, was N210 per share, while the best offer price was N218.9.
Will this rally be sustained?
The share price of the company has more than doubled since it was listed last October which is a massive return to early investors. However, its potential to keep rising will depend on an increase in bids compared to offers.
- It will also depend on how desperate current shareholders are to sell.
- Should they hold off selling, then it suggests the current share price could be sustained.
- A continued rally will, however, be dependent on an increased appetite for the shares via bids.
