Femi Otedola net worth hits big following new listing

Nigerian billionaire Femi Otedola's energy-generating plant, Geregu Power Plc, debuted on the Nigerian stock exchange on Wednesday.

The electricity generating company was listed on the Main Board of the Nigerian equity market in order to gain access to funding from a large group of domestic and foreign investors.

Geregu power increased by $120 million within 24 hours of going public on the NGX due to intense competition among institutional and retail investors for shares of the Geregu Power Plant. At Wednesday's market closing, the company's share price increased by 10% to N110 from N100.

Data provided by Billionaires Africa show that the company's value increased by N52.25 ($120.85 million), going from N250 billion ($578.25) to N305 billion ($699.1).

Otedola will reportedly sell some of the shares of Geregu Power that he now controls through his investment company, Calvados Holding, which also owns a 95% controlling interest in Amperion Power.

Amperion Power holds 99.9% of Geregu Power, which made an investment in the privatization of the electrical industry in 2013 while Shangai Power owns the remaining 5% of Calvados Holding.

In order to prepare for the company's bid, Otedola sold shares in First Bank of Nigeria (FBN) worth N7.96 billion following the fundraising.  Additionally, with a 45.2% increase in full-year net profit projected for 2021, it enhances the company's liquidity.

At the end of the previous year, it reported a profit after tax of N20.5 billion, exceeding the N14.1 billion reported for the same period. Additionally, revenue increased by 32.3% annually to N70.9 billion in the fiscal 2021 year.

The listing comes after the Federal Government chose Amperion Power of Otedola to submit a bid for the purchase of another power facility.

In July 2022, news reports stated that the government intended to sell five power facilities, including Benin Generation Company Limited, Geregu Generation Company Limited, Calabar Generation Company Limited, Omotosho Generation Company Limited, and Olorunsogo Generation Company Limited.

Otedola served as the board chair of Forte Oil between May 2007 and June 2019 before joining Geregu Power in 2013. He has served on the boards of several organizations, including the Nigerian Chamber of Shipping and the Abuja-based Transcorp Hilton Hotel. He has also served on the Nigerian Investment Promotion Council's governing council. He also spent over four years as a member of the National Economic Management Team.

The first facility that Geregu under Otedola's administration acquired cost $132 million. It was purchased by Amperion, a division of the previous Forte Oil. Before it was privatized under government control, the 414 gigawatt power plant was a state asset. At the time, Otedola had made just about $1 billion in the plant.

Following his acquisition of the largest stake in the century-old institution through off-market transactions, Otedola became a party to a contentious ownership scuffle at FBN Holdings, the oldest lender in Nigeria.