Aradel Holding Listing Boosts NGX Market Cap By N3.05trn

Aradel Holdings Plc, Nigeria’s leading integrated energy company, on Monday, received all regulatory approvals to list its ordinary shares on the Main Board of Nigerian Exchange Limited (NGX) by way of a Listing by Introduction.

The company listed 4.34 billion shares on NGX platform at N702.69 per share through a Listing by Introduction boosted the market capitalisation of NGX by N3.05 trillion, marking a significant milestone in the oil and gas sector’s participation in the stock market.

Accordingly, the All Share Index (ASI) gained by 608.50 points, representing a growth of 0.62 per cent to close at 98,215.13 points. Also, market capitalisation gained N3.422 trillion to close at N59.510 trillion.

The company said yesterday, upon being listed, it will immediately qualify to enter the NGX 30 Index and NGX Oil and Gas Index.

Aradel’s listing on NGX expands the investment opportunities for investors looking for quality and dividend-paying companies. The listing further democratises investing in the oil and gas sector by broadening the investor base and deepening the Nigerian capital markets in alignment with the vision of Aradel’s founding fathers – for ordinary Nigerians to have the opportunity to invest in and benefit from Nigeria’s oil and gas sector. Aradel’s listing on the NGX underscores its strategic vision, positioning it as a major publicly listed entity on Nigeria’s foremost stock exchange and expanding opportunities for both the company and its shareholders.

The company’s shares had previously been available to trade on NASD OTC Securities Exchange (“NASD”) since August 1, 2013. The withdrawal and transition from NASD, where Aradel established a solid track record of liquidity and transparent price discovery, marks an exciting new chapter in the company’s growth story.

Trading on NASD ceased on Friday, October 11, 2024.

Commenting on the listing, the managing director/chief executive officer of Aradel, Adegbite Falade, said, “Monday, October 14, 2024 mark a historic milestone for Aradel as we list on the NGX, underscoring our commitment to creating long-term value for our shareholders and deepening our contributions to Nigeria’s economic landscape. This listing is a testament to our resilience, adaptability, and our unwavering dedication to providing sustainable energy solutions that drive growth across our communities and industries. 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”.

Speaking at the Aradel Holdings listing on NGX, chairman of Nigerian Exchange Group, Umaru Kwairanga stated “this achievement is not just a win for Aradel, but also a clear indication to both local and global investors that Nigeria’s capital market remains vibrant, resilient, and full of opportunities. We are honoured to facilitate capital raising for companies like Aradel that play a critical role in Nigeria’s economic progress.”

Group managing director and CEO of NGX Group, Temi Popoola said, “the benefits of an equity market listing for the upstream sub-sector of the oil and gas industry is especially crucial in 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.”

Chairman of Aradel Holdings, Ladi Jadesimi highlighted the company’s focus on innovation and sustainability, noting that Aradel is poised to expand its footprint in the renewables space while maintaining its leadership in the oil and gas sector.

According to him, the listing of Aradel Holdings on NGX represents a pivotal moment for us. 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. This listing provides us with the platform to unlock further value for our shareholders.

CEO of NGX, Jude Chiemeka, echoed similar sentiments, stressing the role of NGX in supporting corporate growth and innovation. “Aradel’s listing highlights NGX’s ability to support leading companies in their growth journey. This is not just a milestone for Aradel, but a key moment for the energy sector, demonstrating how the capital market can fuel efficiency and development in critical industries.”

Chapel Hill Denham and Stanbic IBTC Capital have acted as Financial Advisers to Aradel. Templars acted as Legal Adviser and CardinalStone Securities, the Stockbroker.

Aradel Holdings was incorporated on March 25, 1992 (as the Midas Drilling Fund), changed its name to Niger Delta Exploration and Production Plc in November 1996, and assumed its current name in May 2023.

The Company operates through its subsidiaries and an affiliate company: Aradel Energy Limited (100 per cent), a wholly owned subsidiary of Aradel Holdings, as well as the Operator of the Ogbele, Omerelu, Olo and Olo West Marginal Fields.

Aradel Gas Limited (100 per cent), a wholly owned subsidiary established to pursue investment opportunities in the gas sector; Aradel Investments Limited (100 per cent), also a wholly owned subsidiary established to hold and manage the group’s non-oil & gas assets; Aradel Refineries Limited (95 per cent), an independent operating midstream entity, underscoring Aradel’s commitment to attaining Energy Independence in Nigeria and ND Western Limited (41.67 per cent) with four limited liability companies (being Aradel Energy, Petrolin, First Exploration & Petroleum Development Company, and Waltersmith Petroman Oil) as shareholders.