Aradel Holdings, managed by Nigerian billionaire Ladi Jadesimi, has made a huge achievement by listing its shares on the Nigerian Exchange (NGX). The integrated energy group’s market capitalization increased to N3.053 trillion ($1.9 billion) as it listed 4.34 billion shares at N702.69 ($0.43) each.
Aradel’s listing on the NGX qualifies it for two prominent indices: the NGX Oil and Gas Index and the NGX 30 Index, which monitors the 30 most valued firms on the exchange. This listing broadens investment opportunities for Nigerians, which aligns with Aradel’s aim of promoting more engagement in the oil and gas sector.
“Today marks a historic milestone for Aradel as we list on the NGX,” Aradel CEO Adegbite Falade stated. “This listing underscores our commitment to building long-term wealth for shareholders while also contributing to Nigeria’s economic landscape. As we embark on this new chapter, we are committed to operational excellence, strategic expansion, and sustainable energy solutions.
Aradel, founded in 1992 by the late Godwin Aret Adams, has grown from Nigeria’s first integrated oil and gas investment business to a fully integrated energy group operating in upstream, midstream, and downstream sectors. The company’s asset portfolio comprises several oil and gas assets.
On August 1, 2013, Aradel made its debut on the NASD OTC Securities Exchange, marking the beginning of its journey to public listing. After establishing a track record of liquidity and transparent price discovery on the NASD, the company suspended trading on October 11, 2024, to assist its transition to the NGX.
Under Ladi Jadesimi, founder and executive chairman of the Ladol Group of Companies, Aradel claimed a 260% increase in revenue for the first half of 2024, reaching N268.3 billion ($168.7 million). Its net profit increased to N104.4 billion ($65.6 million) from N13.1 billion ($8.2 million) during the same time previous year.
Aradel’s expansion plan has seen it play a crucial role in the $2.4 billion acquisition of Shell’s onshore oil operations in Nigeria by the Renaissance consortium. In May, the business welcomed the first oil production from the Omerelu field.
The recent acquisition of the Olo and Olo West marginal fields in the Eastern Niger Delta demonstrates the company’s ambitious growth. These fields, which were previously part of Oil Mining Lease 58, are set to be developed by Aradel Energy, pending ministerial approval and completion of field development plans.
Aradel’s recent IPO represents the beginning of a new chapter, boosting its position in Nigeria’s oil and gas sector while also offering value for shareholders. CardinalStone, a Nigerian investment bank, has commenced coverage on Aradel, estimating a 12-month target price of N1,258.61 ($0.77) per share and a market valuation of N5.47 trillion ($3.35 billion). The aim suggests a return of 79.1 percent, highlighting the company’s development potential.
SOURCE: howng.com