Shares of Geregu Power Plc, Nigeria’s only listed electricity company surged in early trading on Thursday to N216.5 as investors scrambled to own the stock.
The company shares have now gained 61per cent in one week after it opened at N134 per share on Thursday, January 26th, 2023.
The company published its 2022 audited accounts as an early flier on Tuesday, recommending an N20 billion dividend. The company was only just listed in October last year.
The share price has been on a tear this week as investors poured over its recently released results.
A quick check reveals that as of 12 noon about 598k shares were on offer while about 38,400 was on bid suggesting the stock is in a net offering position.
However, the highest bid price for the stock was N210 per share while the best offer price was N218.9.
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.