Aradel Holdings Plc has announced its participation in the acquisition of Shell Petroleum Development Company of Nigeria Limited (SPDC), Shell’s onshore subsidiary.
This was disclosed in a corporate notification to the Nigerian Exchange Limited (NGX), shareholders, and the public.
On January 16, 2024, Shell announced that it had reached an agreement to sell SPDC to Renaissance, a consortium of five companies.
“The consortium includes four Nigeria-based exploration and production firms, along with an international energy group, which collectively emerged as the preferred bidder.
“Aradel Energy Limited, a subsidiary of Aradel Holdings, is among the five companies in this consortium,” the company said.
The deal is still subject to regulatory approvals, and Aradel Holdings emphasized its commitment to collaborating with its partners to ensure the successful completion of the transaction.
It noted that the company remains focused on delivering sustainable energy solutions through its operating entities and affiliates.
Aradel Holdings Plc, Nigeria’s newest entrant to the Nigerian Exchange (NGX), has faced a significant wave of sell pressure from investors, leading to a sharp 31.36 per cent drop in its stock price since 16th of October.
This decline has resulted in a staggering N1.12trn loss in market value, bringing the company’s capitalization down from N3.562trn to N2.445trn as of 23rd October, contributing to a broader sell-off in the domestic market.
The decline highlights early volatility surrounding Aradel Holdings, an integrated energy company, which had listed 4.34 billion shares on the NGX Main Board via a “Listing by Introduction” on October 14, 2024.
Initially priced at N702.69 per share, the listing significantly boosted NGX’s market capitalization by N3.05trn and marked a notable milestone in the oil and gas sector’s participation in Nigeria’s stock market.
In the first two days of trading, Aradel Holdings enjoyed an initial surge in its stock price. Shares climbed 10 per cent on Monday, pushing its market capitalization to N3.36trn, followed by another six per cent gain on Tuesday, bringing its value to N3.56trn.
However, investor sentiment quickly shifted by Wednesday, triggering widespread selling, particularly from those who had acquired shares when the company was listed on the NASD-OTC market.