Aradel Holdings Makes Waves on Nigerian Stock Exchange with N3 Trillion Market Capitalization

Lagos, Nigeria – October 14, 2024 – Aradel Holdings has officially joined the Nigerian Stock Exchange (NGX) as a major player in the oil and gas sector, boasting a market capitalization of N3 trillion, making it the highest-valued stock in this industry on the exchange. This significant listing positions Aradel ahead of established competitors like Seplat Energy and Oando Plc.

The company launched with 4.345 billion ordinary shares priced at N702.69 each, quickly attracting substantial investor interest. Within an hour of trading, the share price surged by 10% to close at N772.90, reflecting strong buy pressure and investor optimism about the company’s growth prospects.

Aradel Holdings, previously known as Niger Delta Exploration and Production Company (NDEP), had been trading on the unlisted securities exchange (NASD) since 2013 before transitioning to the NGX. The company experienced remarkable growth, with its stock price jumping to N9,867.38 earlier this year, prompting a stock split that adjusted nominal shares from N10 to N50 each.

2024 has been a banner year for the Nigerian oil and gas sector, with notable stocks such as Oando and Seplat posting year-to-date increases of 585% and 126%, respectively. This bullish trend is attributed to the anticipated launch of Nigeria’s first privately owned PMS-producing facility, the Dangote Refinery, which is set for a stock market listing in 2025.

Aradel’s recent market entry is expected to further boost the NGX, increasing the market capitalization to nearly N60 trillion as it inches closer to the N100 trillion mark.

Key Factors Driving Investor Interest in Aradel Holdings:

  1. Strategic Acquisition Plans: Aradel is part of a consortium aiming to acquire Shell Petroleum Development Company of Nigeria (SPDC), pending regulatory approval. This acquisition, valued at $2.8 billion, would significantly enhance Aradel’s asset base and market positioning.
  2. Strong Production Metrics: In Q1 2024, Aradel reported a 103% increase in crude oil production, reaching 13,250 barrels per day. The company’s gas production also saw a 93% year-on-year growth, underscoring its expanding operational capacity.
  3. Refining Operations: Aradel’s refining capabilities have grown dramatically, with the company refining nearly 59.9 million liters of products in the first quarter of 2024—a 166% increase from the previous year. This segment contributed approximately N50.2 billion to total revenue, showcasing its importance to the company’s financial performance.

Aradel Holdings, incorporated in 1992 and rebranded in 2023, is positioned to leverage its robust asset portfolio, including four oil fields and a modular refinery with a capacity of 11,000 barrels per day, to capitalize on the growing demand for oil and gas in Nigeria.

As the market continues to respond positively to Aradel’s entry, industry analysts are watching closely to see how the company’s strategic moves will impact the broader Nigerian equities landscape.

Previous post “Peter Obi Criticizes Regulatory Confusion as Naira Falls 6.4% Amid Rising Petrol Prices”
Next post Nigeria’s Food Inflation Accelerates to 37.7% in September Amid Rising Fuel Costs

Leave a Reply

Your email address will not be published. Required fields are marked *