The market capitalization of Geregu Power, a leading power generation company owned by Nigerian billionaire Femi Otedola, has risen by more than $380 million since the start of 2023.

According to Billionaires.Africa`, the market capitalization of Geregu Power has increased by N175 billion ($380.05 million) in the past 37 days, going from N372.5 billion ($808.95 million) on Jan. 1 to N547.5 billion ($1.19 billion).

The growth can be attributed to the positive sentiment on the local stock market, fueled by strong buying interest in Geregu Power, which has led to a 46.98 percent increase in its share price from N149 ($0.324) to N219 ($0.475).

Since the listing of Geregu Power’s shares on the Nigerian Exchange on Oct. 5 in the Utility sector and Electric Power Generation sub-sector, the company’s share price has seen a significant increase of 119 percent. It has gone up from N100 ($0.231) to N219 ($0.475) at the time of writing.

This sustained growth in the company’s shares on the Nigerian Exchange has made it the tenth most valuable company on the local bourse, resulting in millions of dollars in profits for investors. The majority of the power-generating company is controlled by renowned businessman, Femi Otedola.

According to an investment banker at a top-tier bank in Lagos, the value of Geregu’s shares is expected to soar beyond N800 ($1.73) per share in the near future. The optimistic forecast is based on the company’s recent shortlisting for the acquisition of the Geregu II power station, a highly sought-after 507-megawatt natural gas facility located in Kogi State, Nigeria.

Despite setbacks and disruptions that led to a decline in revenue from N70.96 billion ($154.1 million) in 2021 to N47.62 billion ($103.4 million), Geregu was able to achieve a profit of N10.17 billion ($22 million) at the end of its 2022 fiscal year.

This was achieved through the implementation of innovative solutions, proactive risk management, and close collaboration with relevant authorities and stakeholders. These efforts allowed Geregu Power to maintain its competitive edge in the industry.

The N10.17 billion ($22 million) profit at the end of the 2022 fiscal year resulted in impressive earnings per share of N4.07 ($0.0088) for the group’s 2.5 billion outstanding shares, causing the board to confidently recommend a N8 ($0.174) per share dividend to be paid to shareholders.

This substantial dividend payment is anticipated to generate millions of dollars in dividend earnings for the majority shareholder, Femi Otedola, who controls the majority of the power company.